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, 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
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


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
The registrant had 29,466,768 shares of common stock outstanding as of May 6, 2019.





OAKTREE STRATEGIC INCOME CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 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
 
 
March 31, 2019 (unaudited)
 
September 30, 2018
ASSETS
 
 
Investments at fair value:
 
 
 
 
Control investments (cost March 31, 2019: $73,237,461; cost September 30, 2018: $73,501,970)
 
$
56,017,403

 
$
58,512,170

Non-control/Non-affiliate investments (cost March 31, 2019: $546,005,001; cost September 30, 2018: $499,423,794)
 
536,130,015

 
498,329,658

Total investments at fair value (cost March 31, 2019: $619,242,462; cost September 30, 2018: $572,925,764)
 
592,147,418

 
556,841,828

Cash and cash equivalents
 
2,854,506

 
10,439,023

Restricted cash
 
8,972,775

 
5,992,764

Interest, dividends and fees receivable
 
2,935,766

 
3,139,334

Due from portfolio companies
 
52,091

 
167,946

Receivables from unsettled transactions
 

 
5,143,533

Deferred financing costs
 
2,199,665

 
2,469,675

Derivative asset at fair value
 
93,702

 
45,807

Other assets
 
930,541

 
891,960

Total assets
 
$
610,186,464

 
$
585,131,870

LIABILITIES AND NET ASSETS
 
 
Liabilities:
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
650,869

 
$
649,781

Base management fee and incentive fee payable
 
1,368,446

 
1,915,682

Due to affiliate
 
1,047,888

 
1,700,952

Interest payable
 
2,961,560

 
1,130,735

Payables from unsettled transactions
 
9,395,443

 
8,932,500

Credit facilities payable
 
307,656,800

 
275,056,800

Total liabilities
 
323,081,006

 
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 March 31, 2019 and September 30, 2018
 
294,668

 
294,668

Additional paid-in-capital
 
370,751,389

 
370,751,389

Accumulated overdistributed earnings
 
(83,940,599
)
 
(75,300,637
)
Total net assets (equivalent to $9.74 and $10.04 per common share as of March 31, 2019 and September 30, 2018, respectively) (Note 12)
 
287,105,458

 
295,745,420

Total liabilities and net assets
 
$
610,186,464

 
$
585,131,870

See notes to Consolidated Financial Statements.

1


Oaktree Strategic Income Corporation
Consolidated Statements of Operations
(unaudited)
 
 
Three months ended
March 31, 2019
 
Three months ended
March 31, 2018
 
Six months ended
March 31, 2019
 
Six months ended
March 31, 2018
Interest income:
 
 
 
 
 
 
 
 
Control investments
 
$
1,472,785

 
$
768,550

 
$
2,958,208

 
$
1,967,247

Non-control/Non-affiliate investments
 
10,769,097

 
8,290,028

 
20,420,246

 
17,054,503

Interest on cash and cash equivalents
 
52,132

 
62,879

 
119,127

 
133,974

Total interest income
 
12,294,014

 
9,121,457

 
23,497,581

 
19,155,724

PIK interest income:
 
 
 
 
 
 
 
 
Control investments
 

 
774,562

 

 
1,069,713

Non-control/Non-affiliate investments
 
6,004

 
7,493

 
13,749

 
10,756

Total PIK interest income
 
6,004

 
782,055

 
13,749

 
1,080,469

Fee income:
 
 
 
 
 
 
 
 
Non-control/Non-affiliate investments
 
181,806

 
651,259

 
229,441

 
1,049,308

Total fee income
 
181,806

 
651,259

 
229,441

 
1,049,308

Total investment income
 
12,481,824

 
10,554,771

 
23,740,771

 
21,285,501

Expenses:
 
 
 
 
 
 
 
 
Base management fee
 
1,451,393

 
1,393,458

 
2,866,160

 
2,805,630

Part I incentive fee
 
1,096,144

 
480,384

 
1,950,522

 
740,106

Professional fees
 
375,601

 
745,110

 
834,213

 
1,765,293

Directors fees
 
105,278

 
130,000

 
210,278

 
260,000

Interest expense
 
3,771,530

 
2,898,165

 
6,994,484

 
5,662,642

Administrator expense
 
231,033

 
281,931

 
665,900

 
561,615

General and administrative expenses
 
283,338

 
276,568

 
615,564

 
711,778

Total expenses
 
7,314,317

 
6,205,616

 
14,137,121

 
12,507,064

Fees waived
 
(49,253
)
 
(240,192
)
 
(476,647
)
 
(357,685
)
Net expenses
 
7,265,064

 
5,965,424

 
13,660,474

 
12,149,379

Net investment income
 
5,216,760

 
4,589,347

 
10,080,297

 
9,136,122

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

 
(59,931
)
 
(2,230,258
)
 
(781,106
)
Affiliate investments
 

 
134,093

 

 
210,009

Non-control/Non-affiliate investments
 
6,989,963

 
3,045,873

 
(8,780,850
)
 
5,433,031

Foreign currency forward contract
 
122,463

 

 
47,895

 

Net unrealized appreciation (depreciation)
 
8,797,411

 
3,120,035

 
(10,963,213
)
 
4,861,934

Realized gains (losses):
 
 
 
 
 
 
 
 
Affiliate investments
 

 

 

 
28

Non-control/Non-affiliate investments
 
(77,774
)
 
973,257

 
1,369,532

 
(3,409,477
)
Foreign currency forward contract
 
(240,970
)
 

 
8,120

 

Net realized gains (losses)
 
(318,744
)
 
973,257

 
1,377,652

 
(3,409,449
)
Net realized and unrealized gains (losses)
 
8,478,667

 
4,093,292

 
(9,585,561
)
 
1,452,485

Net increase (decrease) in net assets resulting from operations
 
$
13,695,427

 
$
8,682,639

 
$
494,736

 
$
10,588,607

Net investment income per common share — basic and diluted
 
$
0.18

 
$
0.16

 
$
0.34

 
$
0.31

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

 
$
0.29

 
$
0.02

 
$
0.36

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, 2019
 
Three months ended
March 31, 2018
 
Six months ended
March 31, 2019
 
Six months ended
March 31, 2018
Operations:
 
 
 
 
 
 
 
 
Net investment income
 
$
5,216,760

 
$
4,589,347

 
$
10,080,297

 
$
9,136,122

Net unrealized appreciation (depreciation)
 
8,797,411

 
3,120,035

 
(10,963,213
)
 
4,861,934

Net realized gains (losses)
 
(318,744
)
 
973,257

 
1,377,652

 
(3,409,449
)
Net increase (decrease) in net assets resulting from operations
 
13,695,427

 
8,682,639

 
494,736

 
10,588,607

Stockholder transactions:
 
 
 
 
 
 
 
 
Distributions to stockholders
 
(4,567,349
)
 
(4,125,347
)
 
(9,134,698
)
 
(9,724,033
)
Net increase (decrease) in net assets from stockholder transactions
 
(4,567,349
)
 
(4,125,347
)
 
(9,134,698
)
 
(9,724,033
)
Capital share transactions:
 
 
 
 
 
 
 
 
Issuance of common stock under dividend reinvestment plan
 
50,543

 
33,764

 
104,654

 
192,931

Repurchases of common stock under dividend reinvestment plan
 
(50,543
)
 
(33,764
)
 
(104,654
)
 
(192,931
)
Net change in net assets from capital share transactions
 

 

 

 

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

 
4,557,292

 
(8,639,962
)
 
864,574

Net assets at beginning of period
 
277,977,380

 
289,943,716

 
295,745,420

 
293,636,434

Net assets at end of period
 
$
287,105,458

 
$
294,501,008

 
$
287,105,458

 
$
294,501,008

Net asset value per common share
 
$
9.74

 
$
9.99

 
$
9.74

 
$
9.99

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, 2019
 
Six months ended
March 31, 2018
Operating activities:
 
 
 
 
Net increase (decrease) in net assets resulting from operations
 
$
494,736

 
$
10,588,607

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
 
10,963,213

 
(4,861,934
)
Net realized (gains) losses
 
(1,377,652
)
 
3,409,449

PIK interest income
 
(13,749
)
 
(1,080,469
)
Deferred fee income
 

 
55,156

Accretion of original issue discount on investments
 
(1,197,136
)
 
(1,054,923
)
Amortization of deferred financing costs
 
280,010

 
397,286

Purchases of investments and net revolver activity
 
(155,778,510
)
 
(252,559,340
)
Principal payments received on investments (scheduled payments)
 
5,879,998

 
3,622,439

Principal payments received on investments (payoffs)
 
61,187,153

 
100,481,363

Proceeds from the sale of investments
 
44,983,198

 
169,751,775

Changes in operating assets and liabilities:
 
 
 
 
(Increase) decrease in interest, dividends and fees receivable
 
203,568

 
332,083

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

 
248,714

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

 
(1,515,000
)
(Increase) decrease in other assets
 
(38,581
)
 
(860,456
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
 
1,088

 
671,553

Increase (decrease) in base management fee and incentive fee payable
 
(547,236
)
 
(720,253
)
Increase (decrease) in due to affiliate
 
(653,064
)
 
1,481,755

Increase (decrease) in interest payable
 
1,830,825

 
102,749

Increase (decrease) in payables from unsettled transactions
 
462,943

 
(26,054,256
)
Increase (decrease) in director fees payable
 

 
31,992

Net cash provided by (used in) operating activities
 
(28,059,808
)
 
2,468,290

Financing activities:
 
 
 
 
Distributions paid in cash
 
(9,030,044
)
 
(9,531,102
)
Borrowings under credit facilities
 
92,000,000

 
29,500,000

Repayments of borrowings under credit facilities
 
(59,400,000
)
 
(32,400,000
)
Proceeds from issuance of notes payable
 

 
3,000,000

Repayments of notes payable
 

 
(3,000,000
)
Repurchases of common stock under dividend reinvestment plan
 
(104,654
)
 
(192,931
)
Deferred financing costs paid
 
(10,000
)
 
(1,250,000
)
Net cash provided by (used in) financing activities
 
23,455,302

 
(13,874,033
)
Net increase (decrease) in cash and cash equivalents and restricted cash
 
(4,604,506
)
 
(11,405,743
)
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
 
$
11,827,281

 
$
31,606,644

Supplemental information:
 
 
 
 
Cash paid for interest
 
$
4,883,649

 
$
5,162,607

Non-cash financing activities:
 
 
 
 
Issuance of shares of common stock under dividend reinvestment plan
 
$
104,654

 
$
192,931

 
 
 
 
 
Reconciliation to the Consolidated Statements of Assets and Liabilities
 
March 31, 2019
 
September 30, 2018
Cash and cash equivalents
 
$
2,854,506

 
$
10,439,023

Restricted cash
 
8,972,775

 
5,992,764

Total cash and cash equivalents and restricted cash
 
$
11,827,281

 
$
16,431,787


See notes to Consolidated Financial Statements.

4

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




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

 
Cost
 
Fair Value
Control Investments (8)
 
 
 
 
 
 
 
 
 
 
 OCSI Glick JV LLC (10)(11)
 
 
 
Multi-sector holdings
 
 
 
 
 
 
 Subordinated Note, LIBOR+6.50% cash due 10/20/2021 (6)(9)
 
9.01%
 
 
 
$
66,125,709

 
$
66,125,710

 
$
56,017,403

 87.5% equity interest (9)(12)
 
 
 
 
 


 
7,111,751

 

 
 
 
 
 
 
 
 
73,237,461

 
56,017,403

 Total Control Investments (19.5% of net assets)
 
 
 
 
 
 
 
$
73,237,461

 
$
56,017,403

 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (13)
 
 
 
 
 
 
 
 
 
 
 4 Over International, LLC
 
 
 
Commercial printing
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022 (6)(15)(17)
 
8.50%
 
 
 
$
5,671,648

 
$
5,604,126

 
$
5,604,723

 First Lien Revolver, LIBOR+6.00% cash due 6/7/2021 (6)(14)(15)(17)
 
 
 
 
 

 
(502
)
 
(808
)
 
 
 
 
 
 
 
 
5,603,624

 
5,603,915

 99 Cents Only Stores LLC
 
 
 
 General merchandise stores
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022 (6)(17)
 
7.65%
 
 
 
1,622,774

 
1,527,751

 
1,357,045

 
 
 
 
 
 
 
 
1,527,751

 
1,357,045

 Access CIG, LLC
 
 
 
 Diversified support services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025 (6)
 
6.24%
 
 
 
5,490,067

 
5,440,342

 
5,435,166

 
 
 
 
 
 
 
 
5,440,342

 
5,435,166

 AI Ladder (Luxembourg) Subco S.a.r.l.
 
 
 
 Electrical components & equipment
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 (6)(9)
 
7.10%
 
 
 
6,582,316

 
6,404,136

 
6,479,502

 
 
 
 
 
 
 
 
6,404,136

 
6,479,502

 Air Medical Group Holdings, Inc.
 
 
 
 Healthcare services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025 (6)(17)
 
6.74%
 
 
 
2,501,335

 
2,445,540

 
2,357,508

 
 
 
 
 
 
 
 
2,445,540

 
2,357,508

 Airxcel, Inc.
 
 
 
 Household appliances
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 4/28/2025 (6)
 
7.00%
 
 
 
6,947,500

 
6,886,971

 
6,449,607

 
 
 
 
 
 
 
 
6,886,971

 
6,449,607

 AL Midcoast Holdings LLC
 
 
 
 Oil & gas storage & transportation
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.50% cash due 8/1/2025 (6)
 
8.10%
 
 
 
567,150

 
561,479

 
565,967

 
 
 
 
 
 
 
 
561,479

 
565,967

 All Web Leads, Inc.
 
 
 
Advertising
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+7.00% cash due 12/29/2020 (6)(15)(17)
 
9.63%
 
 
 
24,451,287

 
24,451,261

 
21,646,700

 
 
 
 
 
 
 
 
24,451,261

 
21,646,700

 Allen Media, LLC
 
 
 
Movies & entertainment
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+6.50% cash due 8/30/2023 (6)(15)(17)
 
9.08%
 
 
 
4,937,500

 
4,827,383

 
4,795,547

 
 
 
 
 
 
 
 
4,827,383

 
4,795,547

Ancile Solutions, Inc.
 
 
 
 Application software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021 (6)(15)(17)
 
9.60%
 
 
 
8,920,819

 
8,780,739

 
8,845,438

 
 
 
 
 
 
 
 
8,780,739

 
8,845,438

Apptio, Inc.
 
 
 
 Application software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 (6)(15)(17)
 
9.74%
 
 
 
8,307,692

 
8,147,678

 
8,146,523

 First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 (6)(14)(15)(17)
 
 
 
 
 

 
(13,335
)
 
(13,430
)
 
 
 
 
 
 
 
 
8,134,343

 
8,133,093

 Aptos, Inc.
 
 
 
 Computer & electronics retail
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.50% cash due 7/23/2025 (6)(15)
 
8.00%
 
 
 
10,972,500

 
10,862,775

 
10,903,922

 
 
 
 
 
 
 
 
10,862,775

 
10,903,922

 Avantor Inc.
 
 
 
Healthcare distributors
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.75% cash due 11/21/2024 (6)(17)
 
6.25%
 
 
 
12,737,102

 
12,733,746

 
12,772,894

 
 
 
 
 
 
 
 
12,733,746

 
12,772,894

 Avaya, Inc.
 
 
 
 Communications equipment
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.25% cash due 12/15/2024 (6)(17)
 
6.73%
 
 
 
9,875,000

 
9,781,959

 
9,849,276

 
 
 
 
 
 
 
 
9,781,959

 
9,849,276


5

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




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

 
Cost
 
Fair Value
 Ball Metalpack Finco, LLC
 
 
 
 Metal & glass containers
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 7/31/2025 (6)(15)
 
7.00%
 
 
 
$
8,932,500

 
$
8,891,733

 
$
8,926,917

 
 
 
 
 
 
 
 
8,891,733

 
8,926,917

 Barracuda Networks, Inc.
 
 
 
 Systems software
 
 
 
 
 
 
 Second Lien Term Loan, LIBOR+7.25% cash due 2/12/2026 (6)(17)
 
9.74%
 
 
 
6,000,000

 
5,974,161

 
5,955,000

 
 
 
 
 
 
 
 
5,974,161

 
5,955,000

 Blackhawk Network Holdings, Inc.
 
 
 
 Data processing & outsourced services
 
 
 
 
 
 
 Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026 (6)(17)
 
9.50%
 
 
 
4,375,000

 
4,332,632

 
4,353,125

 
 
 
 
 
 
 
 
4,332,632

 
4,353,125

 Boxer Parent Company Inc.
 
 
 
 Systems software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025 (6)
 
6.85%
 
 
 
6,149,588

 
6,080,418

 
6,034,559

 
 
 
 
 
 
 
 
6,080,418

 
6,034,559

 Cadence Aerospace LLC
 
 
 
 Aerospace & defense
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+6.50% cash due 11/14/2023 (6)(15)(17)
 
9.10%
 
 
 
13,582,668

 
13,467,381

 
13,256,018

 
 
 
 
 
 
 
 
13,467,381

 
13,256,018

Canyon Buyer, Inc.
 
 
 
Application software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.25% cash due 2/15/2025 (6)
 
6.85%
 
 
 
8,977,330

 
8,870,101

 
8,918,439

 
 
 
 
 
 
 
 
8,870,101

 
8,918,439

Cast & Crew Payroll, LLC
 
 
 
Application software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.00% cash due 2/9/2026 (6)
 
6.50%
 
 
 
5,000,000

 
4,950,000

 
5,026,875

 
 
 
 
 
 
 
 
4,950,000

 
5,026,875

 Cincinnati Bell Inc.
 
 
 
 Integrated telecommunication services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.25% cash due 10/2/2024 (6)(9)(17)
 
5.75%
 
 
 
4,918,134

 
4,902,668

 
4,877,731

 
 
 
 
 
 
 
 
4,902,668

 
4,877,731

 CircusTrix Holdings LLC
 
 
 
 Leisure facilities
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.50% cash due 12/16/2021 (6)(15)(17)
 
8.00%
 
 
 
8,113,470

 
8,056,179

 
8,044,911

 First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/16/2021 (6)(14)(15)(17)
 
8.00%
 
 
 
708,020

 
695,464

 
692,995

 
 
 
 
 
 
 
 
8,751,643

 
8,737,906

 CITGO Petroleum Corp.
 
 
 
 Oil & gas refining & marketing
 
 
 
 
 
 
 First Lien Term Loan, PRIME+2.50% cash due 7/29/2021 (6)(17)
 
8.00%
 
 
 
5,984,375

 
5,964,393

 
5,975,398

 First Lien Term Loan, LIBOR+5.00% cash due 3/22/2024 (6)(17)
 
7.60%
 
 
 
6,000,000

 
5,940,000

 
6,000,000

 
 
 
 
 
 
 
 
11,904,393

 
11,975,398

 Curvature, Inc.
 
 
 
 IT consulting & other services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.00% cash due 10/30/2023 (6)(17)
 
7.50%
 
 
 
9,775,000

 
9,729,182

 
7,656,268

 
 
 
 
 
 
 
 
9,729,182

 
7,656,268

 DigiCert, Inc.
 
 
 
 Internet services & infrastructure
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.00% cash due 10/31/2024 (6)(17)
 
6.50%
 
 
 
10,685,683

 
10,662,897

 
10,520,963

 
 
 
 
 
 
 
 
10,662,897

 
10,520,963

 Empower Payments Acquisition, Inc.
 
 
 
 Commercial printing
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.25% cash due 10/11/2025 (6)(15)(17)
 
6.75%
 
 
 
9,975,000

 
9,951,492

 
9,875,250

 
 
 
 
 
 
 
 
9,951,492

 
9,875,250

 EnergySolutions LLC
 
 
 
 Environmental & facilities services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.75% cash due 5/9/2025 (6)(17)
 
6.35%
 
 
 
3,970,000

 
3,952,545

 
3,520,060

 
 
 
 
 
 
 
 
3,952,545

 
3,520,060

 Eton
 
 
 
 Research & consulting services
 
 
 
 
 
 
 Second Lien Term Loan, LIBOR+7.50% cash due 5/1/2026 (6)
 
10.00%
 
 
 
5,000,000

 
4,977,714

 
4,937,500

 
 
 
 
 
 
 
 
4,977,714

 
4,937,500

Femur Buyer, Inc.
 
 
 
Healthcare equipment
 
 
 
 
 
 
 Second Lien Term Loan, LIBOR+4.50% cash due 3/5/2026 (6)
 
7.10%
 
 
 
9,000,000

 
8,910,000

 
9,028,125

 
 
 
 
 
 
 
 
8,910,000

 
9,028,125


6

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




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

 
Cost
 
Fair Value
 Flight Bidco Inc.
 
 
 
 Alternative carriers
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.50% cash due 7/23/2025 (6)
 
6.00%
 
 
 
$
7,192,771

 
$
7,159,863

 
$
7,105,846

 
 
 
 
 
 
 
 
7,159,863

 
7,105,846

 Frontier Communications Corporation
 
 
 
 Integrated telecommunication services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.75% cash due 6/15/2024 (6)(9)(17)
 
6.25%
 
 
 
1,496,193

 
1,458,040

 
1,464,399

 
 
 
 
 
 
 
 
1,458,040

 
1,464,399

 GKD Index Partners, LLC
 
 
 
 Specialized finance
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+7.25% cash due 6/29/2023 (6)(15)(17)
 
9.85%
 
 
 
9,018,056

 
8,941,506

 
8,876,022

 First Lien Revolver, LIBOR+7.25% cash due 6/29/2023 (6)(14)(15)(17)
 
 
 
 
 

 
(3,773
)
 
(7,000
)
 
 
 
 
 
 
 
 
8,937,733

 
8,869,022

 GoodRx, Inc.
 
 
 
 Interactive media & services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.00% cash due 10/10/2025 (6)
 
5.49%
 
 
 
3,990,000

 
3,980,619

 
3,953,432

 
 
 
 
 
 
 
 
3,980,619

 
3,953,432

 iCIMs, Inc.
 
 
 
 Application software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024 (6)(15)(17)
 
8.99%
 
 
 
4,705,882

 
4,620,395

 
4,620,014

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

 
(5,343
)
 
(5,367
)
 
 
 
 
 
 
 
 
4,615,052

 
4,614,647

 Indivior Finance S.a.r.l.
 
 
 
 Pharmaceuticals
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 12/19/2022 (6)(9)(17)
 
7.25%
 
 
 
8,514,403

 
8,479,221

 
8,365,401

 
 
 
 
 
 
 
 
8,479,221

 
8,365,401

 Internet Pipeline, Inc.
 
 
 
 Internet services & infrastructure
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.75% cash due 8/4/2022 (6)(15)(17)
 
7.25%
 
 
 
12,914,839

 
12,904,194

 
12,827,902

 First Lien Revolver, LIBOR+4.75% cash due 8/4/2021 (6)(14)(15)(17)
 
 
 
 
 

 

 
(5,384
)
 
 
 
 
 
 
 
 
12,904,194

 
12,822,518

 Jo-Ann Stores LLC
 
 
 
 Specialty stores
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.00% cash due 10/20/2023 (6)(17)
 
7.76%
 
 
 
3,807,575

 
3,807,575

 
3,798,056

 
 
 
 
 
 
 
 
3,807,575

 
3,798,056

 Kellermeyer Bergensons Services, LLC
 
 
 
 Environmental & facilities services
 
 
 
 
 
 
 Second Lien Term Loan, LIBOR+8.50% cash due 4/29/2022 (6)(15)(17)
 
11.25%
 
 
 
280,000

 
280,000

 
282,450

 
 
 
 
 
 
 
 
280,000

 
282,450

 KIK Custom Products Inc.
 
 
 
 Household products
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023 (6)(9)(17)
 
6.50%
 
 
 
5,000,000

 
5,029,318

 
4,683,350

 
 
 
 
 
 
 
 
5,029,318

 
4,683,350

 Lannett Company, Inc.
 
 
 
 Pharmaceuticals
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.38% cash due 11/25/2022 (6)(9)(17)
 
7.87%
 
 
 
7,534,058

 
7,549,249

 
7,050,635

 
 
 
 
 
 
 
 
7,549,249

 
7,050,635

 Lytx Holdings, LLC
 
 
 
Research & consulting services
 
 
 
 
 
 
 500 Class B Units (15)
 
 
 
 
 
 
 

 
252,998

 
 
 
 
 
 
 
 

 
252,998

 McAfee, LLC
 
 
 
 Systems software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.75% cash due 9/30/2024 (6)(17)
 
6.25%
 
 
 
8,179,795

 
8,118,115

 
8,184,948

 
 
 
 
 
 
 
 
8,118,115

 
8,184,948

 McDermott Technology (Americas), Inc.
 
 
 
 Oil & gas equipment & services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.00% cash due 5/12/2025 (6)(9)(17)
 
7.50%
 
 
 
1,288,493

 
1,265,944

 
1,237,977

 
 
 
 
 
 
 
 
1,265,944

 
1,237,977

 MHE Intermediate Holdings, LLC
 
 
 
 Diversified support services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024 (6)(15)(17)
 
7.60%
 
 
 
11,597,262

 
11,431,573

 
11,365,340

 First Lien Revolver, LIBOR+5.00% cash due 3/10/2023 (6)(14)(15)(17)
 
7.50%
 
 
 
1,615,764

 
1,386,817

 
1,510,684

 First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/2024 (6)(15)(17)
 
7.60%
 
 
 
2,361,476

 
2,388,384

 
2,314,252

 
 
 
 
 
 
 
 
15,206,774

 
15,190,276


7

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




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

 
Cost
 
Fair Value
Mindbody, Inc.
 
 
 
 Internet services & infrastructure
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+7.00% cash due 2/15/2025 (6)(15)(17)
 
9.48%
 
 
 
$
9,047,619

 
$
8,870,382

 
$
8,866,667

 First Lien Revolver, LIBOR+7.00% cash due 2/15/2025 (6)(14)(15)(17)
 
 
 
 
 
 
 
(18,657
)
 
(19,048
)
 
 
 
 
 
 
 
 
8,851,725

 
8,847,619

 Ministry Brands, LLC
 
 
 
 Application software
 
 
 
 
 
 
 Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023 (6)(15)(17)
 
11.88%
 
 
 
1,568,067

 
1,552,983

 
1,567,804

 Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/2023 (6)(15)(17)
 
11.88%
 
 
 
431,933

 
427,778

 
431,860

 First Lien Revolver, LIBOR+5.00% cash due 12/2/2022 (6)(14)(15)(17)
 
 
 
 
 

 
(861
)
 
(214
)
 
 
 
 
 
 
 
 
1,979,900

 
1,999,450

 Morphe LLC
 
 
 
 Personal products
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+6.00% cash due 2/10/2023 (6)(15)(17)
 
8.50%
 
 
 
11,400,000

 
11,310,237

 
11,400,000

 
 
 
 
 
 
 
 
11,310,237

 
11,400,000

 New Trident Holdcorp, Inc.
 
 
 
Healthcare services
 
 
 
 
 
 
 Second Lien Term Loan, LIBOR+9.50% cash due 7/31/2020 (6)(15)(16)(17)
 
 
 
 
 
1,000,000

 
795,624

 

 
 
 
 
 
 
 
 
795,624

 

 OCI Beaumont LLC
 
 
 
 Commodity chemicals
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.00% cash due 3/13/2025 (6)(9)
 
6.60%
 
 
 
4,950,000

 
4,944,694

 
4,950,000

 
 
 
 
 
 
 
 
4,944,694

 
4,950,000

 Onvoy, LLC
 
 
 
 Integrated telecommunication services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 2/10/2024 (6)(17)
 
7.10%
 
 
 
3,880,404

 
3,866,845

 
3,486,310

 
 
 
 
 
 
 
 
3,866,845

 
3,486,310

 Peraton Corp.
 
 
 
 Aerospace & defense
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.25% cash due 4/29/2024 (6)(17)
 
7.75%
 
 
 
6,386,250

 
6,363,122

 
6,162,731

 
 
 
 
 
 
 
 
6,363,122

 
6,162,731

 ProFrac Services, LLC
 
 
 
 Industrial machinery
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.75% cash due 9/15/2023 (6)(15)(17)
 
8.36%
 
 
 
9,672,223

 
9,585,751

 
9,478,777

 
 
 
 
 
 
 
 
9,585,751

 
9,478,777

 PSI Services LLC
 
 
 
 Human resource & employment services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.00% cash due 1/20/2023 (6)(15)(17)
 
7.50%
 
 
 
6,635,430

 
6,570,483

 
6,579,347

 
 
 
 
 
 
 
 
6,570,483

 
6,579,347

 R1 RCM Inc.
 
 
 
 Healthcare services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.25% cash due 5/8/2025 (6)(9)(15)
 
7.75%
 
 
 
3,970,000

 
3,865,606

 
3,950,150

 
 
 
 
 
 
 
 
3,865,606

 
3,950,150

 Recorded Books Inc.
 
 
 
 Publishing
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 8/29/2025 (6)
 
7.00%
 
 
 
10,447,500

 
10,343,025

 
10,460,559

 
 
 
 
 
 
 
 
10,343,025

 
10,460,559

 Salient CRGT, Inc.
 
 
 
 Aerospace & defense
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.75% cash due 2/28/2022 (6)(15)(17)
 
8.25%
 
 
 
5,813,244

 
5,745,685

 
5,740,579

 
 
 
 
 
 
 
 
5,745,685

 
5,740,579

 Signify Health, LLC
 
 
 
Healthcare services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024 (6)(17)
 
7.10%
 
 
 
10,890,000

 
10,798,799

 
10,890,000

 
 
 
 
 
 
 
 
10,798,799

 
10,890,000

 Sirva Worldwide, Inc.
 
 
 
 Diversified support services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025 (6)
 
8.10%
 
 
 
7,950,000

 
7,830,750

 
7,771,125

 
 
 
 
 
 
 
 
7,830,750

 
7,771,125

 Sophia, L.P.
 
 
 
 Systems software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.25% cash due 9/30/2022 (6)(17)
 
5.85%
 
 
 
1,406,618

 
1,403,581

 
1,399,880

 
 
 
 
 
 
 
 
1,403,581

 
1,399,880


8

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




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

 
Cost
 
Fair Value
StandardAero Aviation Holdings Inc.
 
 
 
 Aerospace & defense
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.00% cash due 1/24/2026 (6)
 
6.60%
 
 
 
$
2,000,000

 
$
1,997,500

 
$
2,003,470

 
 
 
 
 
 
 
 
1,997,500

 
2,003,470

The Dun & Bradstreet Corporation
 
 
 
Research & consulting services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+5.00% cash due 2/6/2026 (6)
 
7.49%
 
 
 
5,000,000

 
4,901,106

 
4,953,125

 
 
 
 
 
 
 
 
4,901,106

 
4,953,125

TIBCO Software Inc.
 
 
 
Application software
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.50% cash due 12/4/2020 (6)(17)
 
6.00%
 
 
 
1,994,898

 
1,994,898

 
1,989,910

 
 
 
 
 
 
 
 
1,994,898

 
1,989,910

 Tribe Buyer LLC
 
 
 
 Human resources & employment services
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+4.50% cash due 2/16/2024 (6)(17)
 
7.00%
 
 
 
1,581,878

 
1,578,688

 
1,534,422

 
 
 
 
 
 
 
 
1,578,688

 
1,534,422

 Truck Hero, Inc.
 
 
 
 Auto parts & equipment
 
 
 
 
 
 
 First Lien Term Loan, LIBOR+3.75% cash due 4/22/2024 (6)(17)