Profile
Sector:
Financial ServicesIndustry:
Asset ManagementCountry:
United StatesIPO:
12 June 2008Next earnings report:
14 November 2024Last dividends:
16 September 2024Next dividends:
N/APrice
after hours | Fri, 01 Nov 2024 23:00:35 GMTAnalysts recommendations
Institutional Ownership
OCSL Latest News
Oaktree Specialty Lending: Excess Software Lending May Compound 'Value Trap' Risk
Oaktree Specialty Lending Corporation's credit profile deteriorated, leading to risks to the dividend. The company barely covered its dividend with net investment income, leading to a potential dividend cut for passive income investors. Oaktree Specialty Lending's net asset value decreased, causing concern about the sustainability of the dividend.
Oaktree Specialty Lending is dealing with loan performance issues and a rising non-accrual percentage. Despite challenges, the BDC is focusing on a first-lien strategy to strengthen its portfolio and maintain its dividend. OCSL lowered its base management fee in order to provide a $0.15 per-share annual NII uplift.
The headline numbers for Oaktree Specialty Lending (OCSL) give insight into how the company performed in the quarter ended June 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
LOS ANGELES, CA, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending” or the “Company”), a specialty finance company, today announced its financial results for the fiscal quarter ended June 30, 2024.
OCSL's portfolio includes 81% first-lien loans, providing high-priority protection and enhancing income stability and asset valuation. Non-accrual investments decreased from $120.7 million to $69.1 million in Q2 2024, indicating enhanced credit quality and portfolio stability. With $1 billion in available liquidity and a net debt-to-equity ratio of 1.02x, OCSL is well-positioned for new investments and financial obligations.
Oaktree Specialty Lending operates as a business development company that holds a focus on investing in middle market companies. Reduction in management fees to 1% is expected to increase net investment income per share by $0.15 annually. However, I believe this was done out of necessity to offset underperformance. Despite strong dividend growth history, caution is advised due to low coverage rate and lack of NAV growth, making OCSL a hold.
LOS ANGELES, CA, July 01, 2024 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“Oaktree Specialty Lending” or the “Company”) today announced that it will report its financial results for the third fiscal quarter ended June 30, 2024 before the opening of the Nasdaq Global Select Market on Thursday, August 1, 2024. Management will host a conference call to discuss the results on the same day at 11:00 a.m.
Oaktree Specialty Lending Corporation's share price has continued to underperform the BDC index after my updated bull thesis earlier this year. On the surface, such flat performance might seem justified. Yet, if we peel back the onion a bit, we will notice that the underlying dynamics remain strong.
Oaktree Specialty Lending Corporation experienced portfolio challenges in the second quarter of 2024, leading to net realized losses and a decrease in net asset value. The dividend payout ratio is nearing 100%, suggesting a potential dividend reduction in the upcoming year. The BDC's credit problems and non-accrual trend may worsen if not addressed promptly.
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What type of business is Oaktree Specialty Lending?
Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and mid-sized companies. It seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering. The firm also seeks investment in media, advertising sectors, software, IT services, pharmaceuticals, biotechnology, real estate management and development, chemicals, machinery, and internet and direct marketing retail sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies. The firm invest in companies having enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.
What sector is Oaktree Specialty Lending in?
Oaktree Specialty Lending is in the Financial Services sector
What industry is Oaktree Specialty Lending in?
Oaktree Specialty Lending is in the Asset Management industry
What country is Oaktree Specialty Lending from?
Oaktree Specialty Lending is headquartered in United States
When did Oaktree Specialty Lending go public?
Oaktree Specialty Lending initial public offering (IPO) was on 12 June 2008
What is Oaktree Specialty Lending website?
https://www.oaktreespecialtylending.com
Is Oaktree Specialty Lending in the S&P 500?
No, Oaktree Specialty Lending is not included in the S&P 500 index
Is Oaktree Specialty Lending in the NASDAQ 100?
No, Oaktree Specialty Lending is not included in the NASDAQ 100 index
Is Oaktree Specialty Lending in the Dow Jones?
No, Oaktree Specialty Lending is not included in the Dow Jones index
When was Oaktree Specialty Lending the previous earnings report?
No data
When does Oaktree Specialty Lending earnings report?
The next expected earnings date for Oaktree Specialty Lending is 14 November 2024