Oaktree Specialty Lending Corp (OCSL) 2019 Q4 法說會逐字稿

Welcome, and thank you for joining Oaktree Specialty Lending Corporation's Fourth Fiscal Quarter 2019 Conference Call. Today's conference call is being recorded.

歡迎並感謝您參加橡樹專業貸款公司 2019 年第四財季電話會議。今天的電話會議正在錄音。

(Operator Instructions)

（操作員說明）

Now I would like to introduce Michael Mosticchio of Investor Relations, who will host today's conference call. Mr. Mosticchio, you may begin.

現在我想介紹一下投資者關係部的邁克爾·莫斯蒂奇奧（Michael Mosticchio），他將主持今天的電話會議。莫斯蒂奇奧先生，您可以開始了。

Thank you, operator, and welcome to Oaktree Specialty Lending Corporation's fiscal fourth quarter conference call. Our earnings release, which we issued this morning and the accompanying slide presentation can be accessed on the Investors section of our website at oaktreespecialtylending.com.

謝謝您，營運商，歡迎參加橡樹專業貸款公司第四財季電話會議。我們今天早上發布的收益報告以及隨附的幻燈片簡報可以在我們網站的投資者部分取得：oaktreespecialtylending.com。

Our speakers today are Armen Panossian, Chief Executive Officer and Chief Investment Officer; Matt Pendo, President and Chief Operating Officer; and Mel Carlisle, Chief Financial Officer and Treasurer. We will be happy to take your questions following their prepared remarks.

今天我們的演講者是執行長兼首席投資長 Armen Panossian； Matt Pendo，總裁兼營運長；財務長兼財務主管梅爾·卡萊爾。我們很樂意在他們準備好的發言後回答您的問題。

Before we begin, I want to remind you that comments on today's call include forward-looking statements reflecting our current views with respect to, among other things, our future operating results and financial performance. Our actual results could differ materially from those implied or expressed in the forward-looking statements. Please refer to our SEC filings for a discussion of these factors in further detail. We undertake no duty to update or revise any forward-looking statements. I'd also like to remind you that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase any interest in any Oaktree fund. Investors and others should note that Oaktree Specialty Lending uses the Investors section of its corporate website to announce material information. The company encourages investors, the media and others to review the information that it shares on its corporate website.

在我們開始之前，我想提醒您，今天電話會議的評論包括前瞻性陳述，反映了我們目前對未來營運表現和財務表現等的看法。我們的實際結果可能與前瞻性陳述中暗示或表達的結果有重大差異。請參閱我們向 SEC 提交的文件，以了解對這些因素的更詳細討論。我們不承擔更新或修改任何前瞻性陳述的責任。我還想提醒您，本次電話會議中的任何內容均不構成出售要約或招攬購買任何橡樹基金任何權益的要約。投資者和其他人應注意，橡樹專業貸款公司使用其公司網站的投資者部分來公佈重要資訊。該公司鼓勵投資者、媒體和其他人查看其在公司網站上分享的資訊。

With that, I will now like to turn the call over to Matt Pendo.

現在，我想將電話轉給馬特·彭多 (Matt Pendo)。

Thank you, Mike, and welcome, everyone, to our fourth quarter earnings conference call. We appreciate your interest in and support of OCSL. We are pleased to report that the fourth quarter of fiscal year 2019 completed another strong year for OCSL.

謝謝麥克，歡迎大家參加我們的第四季財報電話會議。我們感謝您對 OCSL 的興趣和支持。我們很高興地報告，2019 財年第四季為 OCSL 帶來了另一個強勁的一年。

We reported NAV per share of $6.60, finishing the year with our seventh consecutive quarter of increased NAV and full year NAV growth of $0.51 per share or 8.5%.

我們公佈的每股資產淨值為 6.60 美元，今年結束時我們的資產淨值連續第七個季度增長，全年資產淨值增長為每股 0.51 美元，即 8.5%。

Net investment income was $0.12 per share for the fourth quarter consistent with the prior quarter and $0.48 for the fiscal year, up from $0.43 for the previous fiscal year. The annual growth reflected successful investment exits and realizations combined with lower operating and funding expenses.

第四季每股淨投資收益與上一季持平，本財年每股淨投資收益為 0.48 美元，高於上一財年的 0.43 美元。年度成長反映了成功的投資退出和變現以及較低的營運和融資費用。

We steadily monetized non-core investments over the fiscal year, which were reduced by $119 million or 37%. We also made progress reducing nonaccruals following the exits of four investments during the year.

我們在本財年穩步實現非核心投資貨幣化，減少了 1.19 億美元，即 37%。今年退出四項投資後，我們在減少非應計費用方面也取得了進展。

In the fourth quarter, we received full repayment on one of our investments that was previously on nonaccrual. We also restructured an investment on nonaccrual status when we led the recapitalization of the borrower by converting our debt to equity and investing a modest amount of new capital.

在第四季度，我們收到了先前非應計投資的一項投資的全額償還。當我們透過將債務轉換為股權並投資少量新資本來領導借款人的資本重組時，我們也對非應計狀態的投資進行了重組。

I'd like to spend a few moments discussing these events in more detail.

我想花一些時間更詳細地討論這些事件。

Refac Optical Group, one of the largest optical retailers in the U.S., faced challenges last year following the departure of a key account, resulting in our loan not being paid off at maturity. We elected not to extend the maturity and instead entered into a forbearance arrangement with the company. We worked very closely with the private equity sponsor and management team on a solution to maximize value, and the company was able to sell one of its businesses, which covered the full $45 million of our debt at par, including all unpaid interest, default interest and fees.

Refac Optical Group是美國最大的眼鏡零售商之一，去年因一名關鍵客戶的離職而面臨挑戰，導致我們的貸款到期時未能償還。我們選擇不延長期限，而是與公司達成了延期安排。我們與私募股權發起人和管理團隊密切合作，制定了價值最大化的解決方案，該公司得以出售其一項業務，該業務按面值償還了我們4500 萬美元的全部債務，包括所有未付利息、違約利息和費用。

This is an excellent example of our investment team's ability to proactively manage underperforming investments to maximize recoveries and deliver positive outcomes for our shareholders.

這是我們的投資團隊有能力主動管理表現不佳的投資，以最大限度地提高回收率並為股東帶來積極成果的一個很好的例子。

Another example during the quarter was the restructuring of our investment in Cloud5, formerly known as Thing5. Cloud5 is a provider of cloud-based IT hardware and services for the hospitality sector. The company experienced some headwinds following the loss of a large customer, and it went on nonaccrual status last year. We worked with the sponsor and management team to restructure our investment, converting our debt position to equity and providing a small amount of additional capital to support the company's expansion. As a result, we obtained a majority interest in the company, and there is no debt on the balance sheet, which we believe puts us in the best position to maximize recovery.

本季的另一個例子是我們對 Cloud5（以前稱為 Thing5）的投資的重組。Cloud5 是一家為飯店業提供基於雲端的 IT 硬體和服務的供應商。該公司在失去一名大客戶後遇到了一些阻力，去年進入了非應計狀態。我們與發起人和管理團隊合作重組我們的投資，將我們的債務頭寸轉換為股權，並提供少量額外資本來支持公司的擴張。結果，我們獲得了公司的多數股權，並且資產負債表上沒有債務，我們相信這使我們處於最大化回收的最佳位置。

We are pleased with the recent performance of the company, and we are hopeful that it will continue to successfully execute its growth initiatives. Following these events, non-core investments have declined from $893 million since we began managing OCSL two years ago to $205 million or 16% of the portfolio. We continue to work diligently on maximizing the values of our remaining non-core investments, which we expect will continue to occur over time.

我們對該公司最近的業績感到滿意，並希望它將繼續成功執行其成長計劃。這些事件發生後，非核心投資已從我們兩年前開始管理 OCSL 以來的 8.93 億美元下降至 2.05 億美元，佔投資組合的 16%。我們將繼續努力實現剩餘非核心投資的價值最大化，我們預計隨著時間的推移，這種情況將繼續發生。

The fiscal year was also highlighted by our ongoing work to defensively position the portfolio. We remain focused on our risk-controlled approach to investing, lending to larger and more diversified middle-market businesses with lower leverage. As a result of our disciplined approach, our net new investments for the year did not match the pace of our portfolio payoffs and exits. And consequently, we paid down debt by approximately $160 million and reduced our overall leverage from 0.75x at the beginning of the year to 0.51x at year-end. At the same time, we made further improvements to our capital structure to reduce funding costs and improve our financial flexibility.

本財年的另一個亮點是我們正在進行的防禦性投資組合定位工作。我們仍然專注於風險控制的投資方法，以較低的槓桿率向規模更大、更多元化的中間市場企業提供貸款。由於我們採取嚴格的方法，我們今年的淨新投資與我們的投資組合回報和退出的速度不匹配。因此，我們償還了約 1.6 億美元的債務，並將整體槓桿率從年初的 0.75 倍降低到年底的 0.51 倍。同時，我們進一步優化資本結構，降低融資成本，提高財務彈性。

In February, we amended, extended and upsized our credit facility, resulting in better pricing terms and flexibility. And we received shareholder approval to modify asset coverage requirements, providing more cushion on financial covenants. And finally, as you know, on September 30, Armen Panossian was appointed CEO and CIO of OCSL. Armen has assumed portfolio management responsibilities for Oaktree's BDCs and Strategic Credit, the team that is responsible for managing OCSL's portfolio.

二月份，我們修改、延長和擴大了信用額度，從而實現了更好的定價條款和靈活性。我們也獲得了股東批准修改資產覆蓋範圍要求，為財務契約提供更多緩衝。最後，如您所知，9 月 30 日，Armen Panossian 被任命為 OCSL 執行長兼資訊長。Armen 承擔了橡樹資本 BDC 和策略信貸的投資組合管理職責，該團隊負責管理 OCSL 的投資組合。

Armen is a respected investor with extensive experience in opportunistic and performing credit. He joined Oaktree in 2007 as a member of our distressed debt investment team, where he focused on many of the group's successful credit investments. In 2014, he moved on to our U.S. senior loan strategy, where he assumed portfolio management responsibilities. In this role, Armen built an impressive track record that included improved performance and growth in our U.S. Senior Loan strategy and strong returns in Oaktree CLOs.

Armen 是一位受人尊敬的投資者，在機會主義和履約信貸方面擁有豐富的經驗。他於 2007 年加入橡樹資本，擔任不良債權投資團隊的成員，負責集團許多成功的信貸投資。2014 年，他轉向我們的美國高級貸款策略，承擔投資組合管理職責。在此職位上，Armen 建立了令人印象深刻的業績記錄，其中包括我們美國高級貸款策略的績效和成長的改善以及橡樹 CLO 的強勁回報。

Armen's background, investment acumen and significant leadership experience makes him the ideal leader for OCSL. We are fortunate to have a deep bench of highly talented investment professionals and leaders to draw from at Oaktree, and we are confident that Armen will lead the company to its best years ahead.

Armen 的背景、投資頭腦和豐富的領導經驗使他成為 OCSL 的理想領導者。我們很幸運，橡樹資本擁有一群才華橫溢的投資專業人士和領導者，我們相信阿曼將帶領公司走向未來最好的歲月。

With that, I will now turn the call over to Armen.

現在，我將把電話轉給阿曼。

Thanks, Matt, and hello, everyone. Before discussing the market environment and the portfolio, I'd like to say that I'm thrilled to be part of OCSL's management team. I'm excited to lead the company in its next chapter, and I look forward to meeting with many of you over the weeks and months ahead.

謝謝馬特，大家好。在討論市場環境和產品組合之前，我想說，我很高興能成為 OCSL 管理團隊的一員。我很高興能夠領導公司開啟新的篇章，我期待在未來幾週和幾個月內與你們中的許多人會面。

As Matt mentioned, I've been at Oaktree for nearly 13 years, starting in our distressed debt group and then went on to run our U.S. Senior Loan group. While I managed a different strategy, I'm quite familiar with the Strategic Credit investment team and the BDCs. Throughout my career at Oaktree, I have spent a lot of time working with the Strategic Credit team, oftentimes investing alongside them. In fact, I even hired some of the professionals who are now on that team. I'm fortunate to join and manage a very strong team that has done an outstanding job in repositioning and managing OCSL's portfolio over the past two years. I look forward to building upon all of their great work.

正如馬特所提到的，我在橡樹資本工作了近 13 年，從我們的不良債務小組開始，然後繼續管理我們的美國高級貸款小組。雖然我管理不同的策略，但我對策略性信貸投資團隊和 BDC 非常熟悉。在橡樹資本的職業生涯中，我花了很多時間與策略信貸團隊合作，並經常與他們一起投資。事實上，我甚至聘請了該團隊現在的一些專業人士。我很幸運能夠加入並管理一支非常強大的團隊，該團隊在過去兩年中在重新定位和管理 OCSL 的投資組合方面做得非常出色。我期待著在他們所有偉大工作的基礎上再接再厲。

Now I'll share our view on the overall market environment. The direct lending and syndicated loan markets continue to be impacted by the same trends that we have been experiencing for the last couple of years. There continues to be an abundance of capital, willing to invest in the space, which is mainly driven by ongoing demand from institutional investors, including BDCs, CLOs and other private lending vehicles. As a result, the market remains very competitive and borrower friendly. We continue to see tight spreads in both the direct lending and broadly syndicated loan markets, with spreads in the direct lending market tightening relative to the broadly syndicated loan market.

以下我就整體市場環境分享一下我們的看法。直接貸款和銀團貸款市場繼續受到過去幾年所經歷的相同趨勢的影響。仍有大量資本願意投資該領域，這主要是由機構投資者（包括 BDC、CLO 和其他私人借貸工具）的持續需求所推動的。因此，市場競爭仍然非常激烈，對借款人也很友善​​。我們繼續看到直接貸款和廣泛銀團貸款市場的利差收緊，其中直接貸款市場的利差相對於廣泛銀團貸款市場收緊。

Borrower fundamentals, meanwhile, remain relatively stable as they continue to benefit from the steadily growing U.S. economy. However, we are seeing signs of weakness in certain sectors of the economy, as well as isolated company-specific events and credit deterioration in certain loans held by a number of direct lending funds. We believe that this could create more attractive investment opportunities for OCSL down the road. While we remain disciplined and defensive in our investment approach, we are mindful of relative value and investing where we can find the best risk-adjusted returns.

同時，借款人的基本面保持相對穩定，因為他們繼續受益於美國經濟的穩定成長。然而，我們看到某些經濟部門出現疲軟跡象，以及個別公司特定事件以及一些直接貸款基金持有的某些貸款的信用惡化。我們相信，這將為 OCSL 創造更具吸引力的投資機會。雖然我們在投資方法上保持紀律和防禦性，但我們也專注於相對價值，並在可以找到最佳風險調整回報的地方進行投資。

As a reminder, drawing upon the vast resources of the Oaktree platform, we are able to source from multiple origination channels, including middle-market sponsor finance, nonsponsor, broadly syndicated loans and bonds. This diversity provides us with a unique set of investment opportunities and allows us to optimally construct our portfolio.

提醒一下，利用橡樹平台的龐大資源，我們能夠從多種發起管道獲取資金，包括中間市場贊助融資、非贊助、廣泛的銀團貸款和債券。這種多樣性為我們提供了一系列獨特的投資機會，並使我們能夠優化建立我們的投資組合。

Given these dynamics, we originated $138 million of new investment commitments across nine issuers during the fourth quarter. Four of these were add-ons to existing borrowers, while the balance were made in the primary and secondary markets.

鑑於這些動態，我們在第四季向九個發行人發起了 1.38 億美元的新投資承諾。其中四項是對現有借款人的附加貸款，其餘則是在一級和二級市場進行的。

Our largest origination this quarter was to PaySimple, also known as Evercommerce, a service commerce platform that provides business management, integrated payments, marketing and other solutions to small- and medium-sized businesses. The company was seeking capital to support future growth initiatives and to recapitalize its balance sheet following an equity investment by a prominent private equity firm. In aggregate, Oaktree funds invested $60 million in the first lien, of which OCSL was allocated $38 million. The loan is attractively priced at LIBOR plus 550 basis points and was supported by a healthy equity cushion of 77%.

本季我們最大的起源是 PaySimple，也稱為 Evercommerce，這是一個服務商務平台，為中小企業提供業務管理、整合支付、行銷和其他解決方案。在一家著名私募股權公司進行股權投資後，該公司正在尋求資金來支持未來的成長計劃，並調整其資產負債表的資本結構。橡樹基金總計在第一留置權上投資了 6,000 萬美元，其中 OCSL 獲得了 3,800 萬美元。這筆貸款的定價很有吸引力，倫敦銀行同業拆借利率 (LIBOR) 加 550 個基點，並得到 77% 的健康股本緩衝的支持。

The average yield for all of our debt originations was 7.7%, down modestly from the previous quarter, and 89% were first liens. While our conservative approach has resulted in a slightly lower overall yield on new investments, we are confident that this is a prudent way to invest today, especially given the current competitive market environment.

我們所有債務的平均收益率為 7.7%，較上一季略有下降，其中 89% 為第一留置權。雖然我們的保守方法導致新投資的整體收益率略低，但我們相信這是當今謹慎的投資方式，特別是考慮到當前競爭激烈的市場環境。

Looking ahead, despite the broader competitive market dynamics, we are currently evaluating a number of interesting opportunities in our pipeline, including investments in the sponsor and nonsponsor markets that we believe present an attractive risk reward. That said, we continue to be patient, yet opportunistic in our investment approach, and we believe we are well positioned today with ample liquidity to take advantage of new investment opportunities in our pipeline.

展望未來，儘管市場競爭更加激烈，但我們目前正在評估管道中的一些有趣的機會，包括對贊助商和非贊助商市場的投資，我們認為這些機會帶來了有吸引力的風險回報。也就是說，我們在投資方法上繼續保持耐心，但仍保持機會主義，我們相信，我們今天處於有利地位，擁有充足的流動性，可以利用我們管道中的新投資機會。

Turning to the overall portfolio. The portfolio's characteristics were relatively stable from the June quarter. At September 30, we held $1.4 billion of investments across 104 portfolio companies in 49 industries. 79% of our investments were senior secured loans, of which 54% were first lien, 6% was in unsecured debt, 7% was in equity and LP interests and 9% consisted of investments in the Kemper JV.

轉向整體投資組合。與六月季度相比，此投資組合的特徵相對穩定。截至 9 月 30 日，我們在 49 個產業的 104 家投資組合公司中持有 14 億美元的投資。我們 79% 的投資是優先擔保貸款，其中 54% 是第一留置權，6% 是無擔保債務，7% 是股權和有限合夥人權益，9% 是對 Kemper JV 的投資。

We remain focused on defensively positioning OCSL's portfolio by maintaining diversity across issuers and borrowers, focusing on senior secured opportunities and lending to larger, more diversified businesses with lower leverage levels. To that end, the median portfolio company EBITDA increased to $155 million from $103 million in the same period one year ago. Leverage at our portfolio companies was relatively unchanged at 5.0x, well below our overall middle market leverage levels, which remain elevated.

我們仍然專注於透過保持發行人和借款人的多樣性來防禦性地定位 OCSL 的投資組合，專注於高級擔保機會，並向槓桿水平較低的規模更大、更多元化的企業提供貸款。為此，投資組合公司 EBITDA 中位數從一年前同期的 1.03 億美元增至 1.55 億美元。我們投資組合公司的槓桿率相對不變，為 5.0 倍，遠低於我們仍然較高的整體中間市場槓桿水準。

In summary, we are pleased with the composition of our portfolio and with the ongoing progress of reducing the size and risk in the non-core portfolio. Fiscal 2019 was a solid year for OCSL, and we believe we are well positioned to continue to deliver attractive risk-adjusted returns to our shareholders in 2020.

總之，我們對投資組合的組成以及減少非核心投資組合規模和風險的持續進展感到滿意。2019 財年對 OCSL 來說是堅實的一年，我們相信我們有能力在 2020 年繼續為股東提供有吸引力的風險調整回報。

Now I will turn the call over to Mel to discuss our financial results in more detail.

現在我將把電話轉給梅爾，更詳細地討論我們的財務表現。

Thank you, Armen. OCSL delivered another quarter of solid financial performance, which also contributed to strong full year results.

謝謝你，阿門。OCSL 又一個季度實現了穩健的財務業績，這也為強勁的全年業績做出了貢獻。

During the fourth quarter, total investment income was $34.5 million, down from $36.7 million in the third quarter. The $2.2 million decline was due to lower interest and dividend income and was partially offset by higher fee income. Interest income was down by $2.3 million quarter-over-quarter, mainly due to higher OID acceleration on loan payoffs that we received in the June quarter as compared to the September quarter. In addition, interest income was lower due to the decline in LIBOR during the quarter as well as a smaller portfolio. Dividend income was lower by $600,000, primarily the result of the sale of an aircraft in our aviation subsidiary in the June quarter.

第四季總投資收入為 3,450 萬美元，低於第三季的 3,670 萬美元。下降 220 萬美元是由於利息和股息收入減少，但部分被費用收入增加所抵消。利息收入環比下降 230 萬美元，主要是由於我們在 6 月季度收到的貸款償還 OID 加速高於 9 月季度。此外，由於本季 LIBOR 下降以及投資組合規模縮小，利息收入較低。股息收入減少了 60 萬美元，主要是由於我們的航空子公司在六月季度出售了一架飛機。

We recorded higher fee income quarter-over-quarter mostly due to higher prepayment fees from a number of loan payoffs, with the Refac exit being the largest contributor. Overall, the Refac monetization generated $3 million in interest income and fees in the fourth quarter. For the full year, total investment income was up $9 million, driven mainly by higher OID accretion and average interest income which was partially offset by lower dividend income.

我們錄得比上一季更高的費用收入，主要是由於一些貸款償還帶來的預付款費用增加，其中 Refac 退出是最大的貢獻者。總體而言，Refac 貨幣化在第四季度產生了 300 萬美元的利息收入和費用。全年總投資收入增加了 900 萬美元，主要是由於 OID 增加和平均利息收入增加，但股息收入減少部分抵消了這一影響。

Net expenses for the fourth quarter totaled $18.2 million, down $1.8 million from the June quarter. The decline was primarily driven by lower interest expense and lower incentive fees, mainly due to the decrease in investment income. For the full year, operating expenses decreased by $3.2 million as we reduced professional fees and other G&A expenses year-over-year.

第四季淨支出總計 1,820 萬美元，比 6 月季度減少 180 萬美元。下降的主要原因是利息支出和激勵費用下降，而投資收益下降是主要原因。全年營運費用減少了 320 萬美元，因為我們比去年同期減少了專業費用和其他一般及行政費用。

Turning to net asset value. NAV was $6.60 per share at year-end, consistent with this level at June 30, and up 8.5% for the full year, contributing to the puts and takes for the fourth quarter was income in excess of our dividend and net gains on exited investments, primarily offset by unrealized write-downs of some of our quoted investments.

轉向資產淨值。截至年底，資產淨值為每股 6.60 美元，與 6 月 30 日的水平一致，全年增長 8.5%，第四季度看跌期權和看跌期權的收入超過了我們的股息和退出投資的淨收益，主要被我們一些報價投資的未實現減記所抵消。

Moving to credit quality, as of September 30, three investments representing less than $3 million at fair value were on nonaccrual status, which represented just 0.2% of the debt portfolio. This is down from 6.4% in the June quarter and 9.6% at its peak in the December 2018 quarter.

至於信貸質量，截至 9 月 30 日，三項以公允價值計算不到 300 萬美元的投資處於非應計狀態，僅佔債務組合的 0.2%。這低於 6 月季度的 6.4% 和 2018 年 12 月季度峰值的 9.6%。

The quarter-over-quarter decrease was mainly due to the two events that Matt discussed. First, the successful exit of our investment in Refac; and second, the restructuring of our debt investment in Cloud5, which is now classified as equity.

環比下降主要是由於馬特討論的兩個事件。一是我們對Refac的投資成功退出；第二，我們將Cloud5的債務投資重組，現在將其歸類為股權。

With respect to leverage, our leverage ratio decreased to 0.51x from 0.58x on June 30, as the portfolio shrank slightly during the quarter. We experienced $139 million in payoffs and exits, which was greater than the $129 million of investment fundings. As of year-end, total debt outstanding was $476 million and had a weighted average interest rate of 4.8%, down slightly from the June quarter. Cash and cash equivalents were $15 million at September 30, and we had ample liquidity with $385 million of undrawn capacity on the revolving credit facility.

在槓桿方面，由於本季投資組合略有收縮，我們的槓桿率從 6 月 30 日的 0.58 倍降至 0.51 倍。我們經歷了 1.39 億美元的回報和退出，這比 1.29 億美元的投資資金還要多。截至年底，未償債務總額為 4.76 億美元，加權平均利率為 4.8%，較 6 月季度略有下降。截至 9 月 30 日，現金和現金等價物為 1,500 萬美元，我們擁有充足的流動性，循環信貸額度未動用能力為 3.85 億美元。

Shifting now to the Kemper joint venture. As of September 30, the JV had $361 million of assets invested in senior secured loans to 51 companies. This compared to $349 million of total assets invested in the same number of companies last quarter. Leverage at the JV was 1.2x at year-end, down slightly from the June quarter. Taking into account the settlement of all trades, net leverage would have been 1.4x. As a reminder, we also enhanced the joint venture's capital structure during the year by amending and increasing the size of its credit facility from $200 million to $250 million. The JV credit facility had $80 million of undrawn capacity at year-end.

現在轉向 Kemper 合資企業。截至 9 月 30 日，該合資公司擁有 3.61 億美元的資產，投資於向 51 家公司提供的優先擔保貸款。相比之下，上季投資相同數量公司的總資產為 3.49 億美元。截至年底，合資公司的槓桿率為 1.2 倍，較 6 月季度略有下降。考慮到所有交易的結算，淨槓桿將為 1.4 倍。需要提醒的是，我們在這一年也透過修改信貸額度並將其規模從 2 億美元增加到 2.5 億美元來增強合資企業的資本結構。截至年底，合資企業信貸額度尚有 8,000 萬美元的未動用產能。

Now I will turn the call over to Matt.

現在我將把電話轉給馬特。

Thank you, Mel. We continue to effectively execute and deliver solid returns for OCSL through a number of initiatives.

謝謝你，梅爾。我們繼續透過一系列措施有效執行並為 OCSL 帶來豐厚回報。

First, our ongoing progress positioning the Kemper JV for long-term success continued in the latest quarter. We added $46 million of new investments across seven issuers. Leverage was 1.2x, well below our longer-term target of 2.0x, leaving us plenty of runway to invest in opportunities.

首先，我們在最近一個季度繼續為讓 Kemper 合資企業取得長期成功而取得進展。我們對七個發行人增加了 4,600 萬美元的新投資。槓桿率為 1.2 倍，遠低於我們 2.0 倍的長期目標，為我們留下了充足的空間來投資機會。

We also continue to reduce our holdings of noninterest-generating investments, redeploying the capital into new investments. We received proceeds of $49 million from the exit of Refac, which can now be invested in income-producing assets. To illustrate the impact that these proceeds can have on earnings, assuming we are able to invest $49 million at our current debt portfolio yield of 8.9%, OCSL's ROE would increase by approximately 40 basis points annually. Following the exit of Refac, noninterest-generating investments were $102 million at quarter-end, a decrease from $152 million in the prior quarter.

我們也持續減少非生息投資的持有量，將資本重新部署到新的投資中。我們從 Refac 退出中獲得了 4900 萬美元的收益，現在可以投資於創收資產。為了說明這些收益對獲利的影響，假設我們能夠以當前債務投資組合收益率 8.9% 投資 4,900 萬美元，OCSL 的 ROE 將每年增加約 40 個基點。Refac 退出後，季末非生息投資為 1.02 億美元，較上一季的 1.52 億美元下降。

Additionally, OCSL has the ability to increase returns by deploying more leverage at the portfolio level. While we have no near-term plans to exceed our target range of 0.7 to 0.85x, we are currently operating at 0.5x. So we have the opportunity to enhance returns as we find attractive investments and deploy higher leverage.

此外，OCSL 能夠透過在投資組合層面部署更多槓桿來增加回報。雖然我們的近期計劃沒有超過 0.7 至 0.85 倍的目標範圍，但我們目前的營運速度為 0.5 倍。因此，當我們發現有吸引力的投資並部署更高的槓桿時，我們就有機會提高回報。

Turning now to the dividend. This morning, we announced a $0.095 dividend that is consistent with the prior six distributions. We intend to continue paying sustainable and consistent dividends that are supported by portfolio performance.

現在轉向股息。今天早上，我們宣布派發 0.095 美元的股息，與之前六次派息一致。我們打算繼續支付由投資組合績效支持的可持續且持續的股利。

In conclusion, we are proud of our strong fourth quarter results and our work to reshape the portfolio by investing in assets that are consistent with Oaktree's disciplined, risk-controlled approach. As we look to fiscal 2020, we are confident that we have positioned OCSL's portfolio for continued strong earnings. We will continue to strategically leverage Oaktree's significant platform to identify attractive risk-adjusted investment opportunities that deliver value to our shareholders. Thank you for joining us on today's call and for your continued interest in OCSL.

總之，我們對第四季度的強勁業績以及我們透過投資符合橡樹嚴謹、風險控制方法的資產來重塑投資組合的工作感到自豪。展望 2020 財年，我們有信心將 OCSL 的投資組合定位為持續強勁的獲利。我們將繼續策略性地利用橡樹資本的重要平台來尋找有吸引力的風險調整投資機會，為我們的股東創造價值。感謝您參加今天的電話會議並感謝您對 OCSL 的持續關注。

With that, we're happy to take your questions. Operator, please open the lines.

因此，我們很樂意回答您的問題。接線員，請開通線路。

(Operator Instructions)

（操作員說明）

The first question is from Kyle Joseph with Jefferies.

第一個問題是凱爾·約瑟夫和傑弗里斯提出的。

Start off on yields, I know you highlighted that yield on new investments has come down a bit. But if you look at the overall portfolio, the yields have really hung in there and are actually up a bit year-over-year. Is that primarily a function of just portfolio rotation and rotating nonincome-producing securities into actual income-producing assets?

從收益率開始，我知道您強調新投​​資的收益率有所下降。但如果你看一下整體投資組合，你會發現收益率確實穩定了下來，而且實際上比去年同期有所上升。這主要是投資組合輪換和將非創收證券輪換為實際創收資產的函數嗎？

Yes, that's exactly right. This is Armen speaking. We have been able to deploy some nonincome-producing assets into income-producing loans.

是的，完全正確。我是阿們。我們已經能夠將一些非創收資產配置為創收貸款。

Got it. And then looking at repayments. Obviously, they've been elevated, but can you give us a sense for your outlook for repayments now that the non-core book is -- has gotten to be the size that it is.

知道了。然後再看還款狀況。顯然，它們已經提高了，但是既然非核心帳簿已經達到了現在的規模，您能否讓我們了解一下您的還款前景。

On the non-core specifically or on the overall portfolio?

具體是非核心還是整體投資組合？

Overall portfolio, would you anticipate repayment levels kind of subsiding, given how much of the legacy book you guys have already exited?

整體投資組合，考慮到您已經退出了多少遺留書籍，您預計還款水準會有所下降嗎？

It's hard to predict the pace of repayments, we feel good about the book. And when you do have a high-quality book with good borrowers in it, you tend to see repayments more frequently than you would like, but I don't think we can make a prediction on the pace of repayments, unfortunately.

很難預測還款的速度，我們對這本書感覺很好。當你確實有一本高品質的書，裡面有好的借款人時，你往往會看到還款的頻率比你想像的要高，但不幸的是，我認為我們無法預測還款的速度。

Got it. That's fair. And then one last one for me. Obviously, nice job exiting 2 nonaccruals. But of the assets you guys have originated, can you give us a sense for performance there, both in terms of revenue growth and EBITDA growth and any sort of -- any changes you've seen over the last 3 months?

知道了。這還算公平。然後是最後一張給我的。顯然，退出 2 個非應計項目做得很好。但是，對於您們創建的資產，您能否讓我們了解那裡的業績，包括收入增長和 EBITDA 增長以及過去 3 個月您看到的任何變化？

Yes, it's a good question. And I wouldn't say that there is a meaningful median or mean. But anecdotally, I would say, in the U.S. economy, in both broadly syndicated loans that we would look at and some of the private loans that we look at, revenue growth is in the mid-single digits. EBITDA, it really depends on the company and the industry. We've seen most businesses, I would say, have anemic EBITDA growth despite having some revenue growth. Part of the challenges in terms of profitability is a tight labor market, as well as some volatility in commodities. So I wouldn't say there's a tremendous takeaway other than the market and the economy is stable, but I wouldn't say it is as strong as it was 2 or 3 years ago in terms of year-over-year revenue and cash flow growth.

是的，這是一個好問題。我不會說存在有意義的中位數或平均值。但有趣的是，我想說，在美國經濟中，無論是我們關注的廣泛銀團貸款還是我們關注的一些私人貸款，收入成長都在中個位數。EBITDA，這實際上取決於公司和行業。我想說的是，我們看到大多數企業儘管收入有所成長，但 EBITDA 成長乏力。獲利能力方面的部分挑戰是勞動市場緊張以及大宗商品的一些波動。因此，我不會說除了市場和經濟穩定之外還有什麼巨大的收穫，但我不會說就同比收入和現金流而言，它像兩三年前那樣強勁生長。

The next question is from Rick Shane with JP Morgan.

下一個問題來自摩根大通的 Rick Shane。

It's Melissa on for Rick today. Armen, congratulations and welcome. I was hoping you guys could touch on the equity position. I understand you did the restructuring, I believe it was Cloud5, you said and restructured that deal and took some equity instead of debt, made a small incremental investment. Given that you do want to ultimately rotate out of the illiquid or sort of nonincome-producing positions, how high might you be willing to take the equity component of that portfolio if other restructuring opportunities come up?

今天由梅麗莎替瑞克主持。阿門，祝賀你，歡迎你。我希望你們能談談股權狀況。我知道你進行了重組，我相信是Cloud5，你說並重組了該交易並採取了一些股權而不是債務，進行了少量增量投資。鑑於您確實希望最終擺脫流動性不足或不產生收入的頭寸，如果出現其他重組機會，您願意接受該投資組合中的股權部分的意願有多高？

Thanks for the question, Melissa. It's really a case-by-case basis. I don't -- we don't have a target in mind in terms of equity. In fact, we would like to have the equity position at zero. But with that said, we are always looking to maximize outcomes and recoveries given challenging situations on behalf of our shareholders. And so sometimes you have to take equity to do that and to be able to bridge to a medium- or longer-term outcome that we think is value-maximizing.

謝謝你的提問，梅麗莎。這確實是具體情況具體分析。我不知道——我們心裡沒有公平方面的目標。事實上，我們希望股權部位為零。但話雖如此，我們始終代表股東尋求在充滿挑戰的情況下實現成果和復甦最大化。因此，有時你必須採取股權來做到這一點，並且能夠實現我們認為價值最大化的中期或長期結果。

Yes. Melissa, it's Matt. The point I would make is, since we've taken over the management of the BDC, we've worked name by name to reach at what, we think, is the best outcome as opposed to, kind of setting parameters or a broad-brush approach. It's really just been name my name. We think that results in the best outcome, and we're going to continue to do that.

是的。梅麗莎，是馬特。我想說的一點是，自從我們接管了 BDC 的管理以來，我們一直在逐個進行工作，以達到我們認為最好的結果，而不是設置參數或廣泛的結果。刷方法。這真的只是命名我的名字。我們認為這會帶來最好的結果，我們將繼續這樣做。

Okay. I just...

好的。我只是...

.

。

I would also mention in terms of equity, also, I mean, once in a while, we do invest in some warrants along as kind of a kicker attached to some of our loan positions, but those are just more yield enhancement rather than a strategic view towards adding equity.

我還要提到股權方面，我的意思是，偶爾，我們確實會投資一些認股權證，作為我們某些貸款頭寸的附帶條件，但這些只是更多的收益率提高，而不是戰略性的投資.增加股權的觀點。

Got it. And can you remind me, was Cloud5 a legacy investment? Or is that one that came from your team?

知道了。能提醒我一下，Cloud5 是一項遺留投資嗎？還是來自您團隊的那個？

No, it's a legacy investment.

不，這是一項遺產投資。

Okay. I guess my last follow-up question for you would be around the syndicated market, and apologies if I missed it and you covered it already. Given some volatility in that space and an increased allocation, kind of, opportunistically there something you guys are considering?

好的。我想我向您提出的最後一個後續問題將是關於聯合市場的，如果我錯過了並且您已經涵蓋了它，我深表歉意。考慮到該領域的一些波動和分配的增加，你們正在考慮一些機會主義的事情嗎？

We're always considering relative value between bonds, loans and private debt. And you're right that the broadly syndicated market is a little bit more dislocated than either high-yield bonds or direct lending. The reason for that is there's been over $50 billion of retail outflows out of the broadly syndicated market over the last 12 months. And CLO formation, while it's been strong most of the year, it's tailed off here in the fourth quarter. And so that buyer base, which is actually a very rating-sensitive buyer base is a little bit weaker than it was. But even away from the CLO investor universe, there really isn't incremental fund formation of meaningful scale to buy loans that aren't structured optimally for CLO execution. So if you do have a B3 corporate family rating loan and if it's a loan that was done perhaps 2 years ago with spreads that are -- that were tighter than they should be today, those loans are trading at a discount in the mid-90s. And so we are seeing some opportunities to invest in that space. But obviously, we're not looking to add credit risk of meaningful scale into OCSL. And so it's really a relative value case-by-case underwriting, but we are seeing some opportunities there.

我們一直在考慮債券、貸款和私人債務之間的相對價值。你說得對，廣泛的銀團市場比高收益債券或直接貸款市場更混亂。原因是過去 12 個月有超過 500 億美元的零售資金流出廣泛的銀團市場。CLO 的形成雖然在一年中大部分時間都很強勁，但在第四季有所減弱。因此，買家基礎（實際上是對評級非常敏感的買家基礎）比以前要弱一些。但即使遠離 CLO 投資者領域，實際上也沒有形成有意義規模的增量基金來購買結構不適合 CLO 執行的貸款。因此，如果您確實擁有 B3 企業家庭評級貸款，並且該貸款可能是兩年前完成的，且利差比今天更窄，那麼這些貸款的交易價格將在 90 年代中期打折。因此，我們看到了一些投資該領域的機會。但顯然，我們並不打算將有意義規模的信用風險加入 OCSL 中。因此，這實際上是一個相對價值的個案承保，但我們在那裡看到了一些機會。

Your next question is from Ryan Lynch with KBW.

您的下一個問題來自 KBW 的 Ryan Lynch。

First, Armen. Welcome to your new position as CEO of OCSL.

首先是阿門。歡迎擔任 OCSL 執行長的新職位。

Thank you.

謝謝。

As I look at your background, Armen, you are the head of Oaktree's performing credit, which includes really oversight of senior loans, high-yield bonds, convertibles, structured credit, emerging markets, mezzanine as well as the direct lending strategy as well as the BDCs now. That's a very wide range of very heavy responsibilities. So how are you allocating your time? And how do you have enough time to allocate to actually be focused in on OCSL managing that entity?

Armen，據我了解您的背景，您是橡樹資本履約信貸部門的負責人，其中包括對高級貸款、高收益債券、可轉換債券、結構性信貸、新興市場、夾層以及直接貸款策略以及現在是BDC 。這是一個非常廣泛的責任。那麼你要如何分配你的時間呢？您如何分配足夠的時間來真正專注於 OCSL 管理該實體？

That's a great question. And I think it's a multipart answer. First, the team that manages Strategic Credit and the BDCs is in place, and it's a team that I know very well. And so there is sort of a seamless transition as it pertains to that team remaining and managing the portfolio.

這是一個很好的問題。我認為這是一個多部分的答案。首先，管理策略性信貸和 BDC 的團隊已經就位，這是一個我非常熟悉的團隊。因此，對於留下來並管理投資組合的團隊來說，存在某種無縫過渡。

Second, Edgar and I joined Oaktree at roughly the same time in the distressed debt group, sort of grew up together in the distressed debt strategy, have a very similar view on credit and a view on investing informed by how things evolved in the global financial crisis. Given that background, it was the most natural fit for me to take over for Edgar upon his departure. And we think that there will be really very little to no style drift just given that consistency in background and investment type.

其次，埃德加和我大約在同一時間加入橡樹資本的不良債務小組，在不良債務策略中一起成長，對信貸和投資的看法非常相似，了解全球金融形勢的演變。鑑於這種背景，在埃德加離開後由我接替他是最自然的選擇。我們認為，考慮到背景和投資類型的一致性，風格漂移真的很小甚至沒有。

In terms of my other responsibilities, I'm fortunate to have a team of portfolio managers managing each of the individual strategies. And so my responsibilities are more in terms of oversight and information sharing across the various strategies in terms of knowing where the most attractive relative value resides, best practices across those different strategies and geographies. And so I'm not digging in on emerging market investments on a single-name basis. But interfacing with our portfolio managers in each of those underlying strategies is actually, I believe, linear to the benefit of our OCSL shareholders because we will have a view on adjacent asset classes that may influence both technical and fundamental outcomes that could be interesting for OCSL. And it is certainly more than a full-time job, but my attention is very much focused on the Strategic Credit strategy in terms of portfolio management responsibilities.

就我的其他職責而言，我很幸運有一個投資組合經理團隊來管理每個單獨的策略。因此，我的職責更多的是跨各種策略的監督和資訊共享，了解最具吸引力的相對價值在哪裡，以及跨這些不同策略和地區的最佳實踐。因此，我並不是在單一名稱的基礎上深入研究新興市場投資。但我認為，與我們的投資組合經理在每項基本策略中的互動實際上與我們的OCSL 股東的利益是線性的，因為我們將對相鄰的資產類別有一個看法，這些資產類別可能會影響OCSL 可能感興趣的技術和基本結果。這當然不僅僅是一份全職工作，但我的注意力非常集中在投資組合管理職責方面的策略性信貸策略。

Obviously, OCSL is a very material part of that. And we're really looking to expand our reach in the origination there. The other thing I would say is, while I was the portfolio manager for our Senior Loan strategy. I did, earlier this year, promote one of our senior members of that team to become an assistant portfolio manager, and now he has taken over as the sole portfolio manager for that strategy upon my departure from that group and appointment as CEO of OCSL. So it's certainly busy, but it's very manageable. And I think it's a very exciting time to be able to look across different asset categories and invest in OCSL with that knowledge in mind.

顯然，OCSL 是其中非常重要的一環。我們確實希望擴大我們在該地區的起源。我要說的另一件事是，當我擔任我們的高級貸款策略的投資組合經理時。今年早些時候，我確實提拔了該團隊的一名高級成員擔任助理投資組合經理，現在在我離開該團隊並被任命為 OCSL 首席執行官後，他接任該策略的唯一投資組合經理。所以它確實很忙，但很容易管理。我認為現在是一個非常令人興奮的時刻，能夠審視不同的資產類別並在牢記這些知識的情況下投資 OCSL。

Okay. That's really helpful and really good color and background on the transition and how you split your activities. I had a question on capital deployment and leverage utilization. Basically since Oaktree has taken over this entity, we've continued to see your leverage continue to decline. And there was one quarter where it increased, but basically every quarter has declined. Now I know within that, there's a lot of rotating out of non-core assets that can probably push up repayments a little bit over this time period. But you guys have a leverage target of 0.7 to 0.85. You guys are now at 0.51, so significantly below that. Can you guys grow leverage? And how important is it to utilize higher leverage in this competitive environment, that doesn't really seem to be meaningfully changed, while still being patient and prudent and sticking to your knitting?

好的。這對於過渡以及如何劃分活動非常有幫助且非常好的顏色和背景。我有一個關於資本配置和槓桿利用的問題。基本上，自從橡樹資本接管該實體以來，我們繼續看到您的槓桿率繼續下降。有一個季度有所增長，但基本上每個季度都在下降。現在我知道，其中有大量非核心資產的輪換可能會在這段時間內稍微推高還款額。但你們的槓桿目標是 0.7 到 0.85。你們現在的分數是 0.51，遠低於這個值。你們能增加槓桿嗎？在這個競爭環境中利用更高的槓桿有多重要，這似乎並沒有真正發生有意義的改變，同時仍然保持耐心和謹慎並堅持你的編織？

Yes. I mean, there's certainly a balance there. We would like to get our leverage levels up into the range that we have indicated. The fact that we're below that is because we just haven't seen attractive direct loan -- direct lending opportunities. As you know, there's been a significant amount of fund formation in direct lending over the last 5 to 7 years, the assets under management in that asset class have more than doubled in that time frame. And we feel that chasing highly cyclical businesses in direct loans that are highly levered, and as spreads have tightened in, the typical sponsor-backed direct loan that we're seeing getting done in the market is just not attractive enough from our perspective. And so we would like to originate loans that are a little bit off the beaten path, more opportunistic in nature, lower levered and working with borrowers that maybe just aren't the classic fit for a typical direct lending fund or for OCSL execution. And as you might imagine, to be able to do that requires a meaningful investment in origination, it requires patience and it requires turning over a lot of stones until you find a real nugget of value. That's what we're focused on doing. We will increase leverage as we do widen our pipeline or increase our pipeline. But we're also not going to chase the highly cyclical market that is developed at this point in direct lending.

是的。我的意思是，那裡肯定存在平衡。我們希望將槓桿水平提高到我們指定的範圍內。事實上，我們低於這個數字是因為我們還沒有看到有吸引力的直接貸款——直接貸款機會。如您所知，在過去 5 到 7 年中，直接貸款領域形成了大量基金，該資產類別所管理的資產在此期間增加了一倍以上。我們認為，在高槓桿的直接貸款中追逐高度週期性的業務，並且隨著利差收緊，我們在市場上看到的典型的讚助商支持的直接貸款從我們的角度來看不夠有吸引力。因此，我們希望發放一些不走尋常路、本質上更具機會主義、槓桿率較低的貸款，並與借款人合作，而這些貸款可能不適合典型的直接貸款基金或 OCSL 執行。正如你可能想像的那樣，要做到這一點，需要對原創進行有意義的投資，需要耐心，需要翻閱大量的石頭，直到找到真正有價值的金塊。這就是我們專注於做的事情。當我們擴大管道或增加管道時，我們將增加槓桿。但我們也不打算追逐直接貸款目前發展的高度週期性市場。

Okay. Yes, I appreciate the willingness to be patient and prudent in an environment that is very competitive and where you may not be seeing some of the best risk-adjusted returns. But that would bring me, I guess, to maybe my next question regarding share repurchases. If the market environment, you don't deem attractive opportunities outside of your existing portfolio to the level to actually grow the portfolio and increase leverage, one way you can do that is purchase shares, particularly if you're trading at a significant discount to book value, which you are. So what are your views on share repurchases?

好的。是的，我很欣賞您在競爭激烈的環境中保持耐心和謹慎的意願，而且您可能看不到一些最佳的風險調整回報。但我想，這可能會讓我想到下一個有關股票回購的問題。如果市場環境，您認為現有投資組合之外的有吸引力的機會不足以實際擴大投資組合併提高槓桿率，那麼您可以採取的一種方法是購買股票，特別是當您的交易價格大幅折扣時帳面價值，就是你。那麼您對於股票回購有何看法呢？

Well, we've considered many different ways to enhance shareholder value. On share repurchases, we are not advocating doing that at this time. First of all, it reduces the float on the shares. And second, we would like to use our capacity that we have in OCSL to grow the book. I am obviously very familiar with what sort of a pipeline we have seen this year. But I do think that we need to make a renewed effort to looking at more deals, expanding our pipeline, widening our funnel. And so I'm not prepared to say that we have turned over all the stones that we need to turn over before we could advocate a share buyback.

嗯，我們考慮了許多不同的方法來提高股東價值。關於股票回購，我們目前不主張這樣做。首先，它減少了股票的流通量。其次，我們希望利用 OCSL 的能力來發展這本書。我顯然非常熟悉今年我們看到的是什麼樣的管道。但我確實認為我們需要做出新的努力來尋找更多交易，擴大我們的管道，擴大我們的管道。因此，我不准備說我們已經交出了在我們提倡股票回購之前需要交出的所有石頭。

And Ryan, it's Matt. Just to add to that, and it's a very good question, and we've discussed it with our Board every time we get together. The one other thing to add to Armen's answer is one of the things that, as we mentioned previously, we're very focused on is obtaining an investment-grade rating. So increasing our leverage through share repurchase, obviously, is something that, from a ratings perspective, is not a positive. So that's just one other consideration that we add to the mix whenever we look at this.

瑞安，是馬特。補充一點，這是一個非常好的問題，我們每次聚會時都會與董事會討論這個問題。阿門的答案中要補充的另一件事是，正如我們之前提到的，我們非常關注的事情之一是獲得投資級評級。因此，從評級的角度來看，透過股票回購來提高槓桿率顯然不是一件好事。因此，這只是我們在考慮這個問題時添加的另一個考慮因素。

Yes. No, that make sense trying to get the investment-grade rating. I Get the negative that it has on that. I would just say, as a follow-up -- and I also understand the want to grow the portfolio versus actually repurchase shares, but I would say in the absence of portfolio growth, which hasn't happened really over the last couple of years, it seems that share repurchases could be a nice complement to that.

是的。不，嘗試獲得投資等級評級是有意義的。我得到了它的負面影響。我只想說，作為後續行動 - 我也理解想要增加投資組合而不是實際回購股票，但我會說在沒有投資組合增長的情況下，這在過去幾年中並沒有真正發生看來，股票回購可能是對此的一個很好的補充。

So that's all -- those are all my questions. I appreciate the time today.

這就是全部——這些都是我的問題。我很感激今天的時間。

Thanks, Ryan.

謝謝，瑞安。

(Operator Instructions)

（操作員說明）

The next question is from Jim Young with West Family Investments.

下一個問題來自 West Family Investments 的 Jim Young。

Armen, you'd mentioned that you're seeing some weakness in certain parts of the economy. Could you elaborate and be a little bit more specific, please?

阿門，您提到您看到經濟某些​​領域出現疲軟。能詳細說明一下並且更具體一點嗎？

Sure. Well, energy, obviously, we are seeing both exploration and production companies as well as services attached to those businesses having problems both on the onshore and offshore part of that market. We are seeing some commodity-oriented weakness in some chemicals. We are seeing some autos slow because -- especially, those that are exposed to Europe and China. So I wouldn't say the pockets of weakness are necessarily tied to one another, but there are some idiosyncratic issues developing in the markets that we're watching.

當然。嗯，在能源方面，顯然，我們看到勘探和生產公司以及這些企業的附屬服務在該市場的陸上和海上部分都存在問題。我們看到一些化學物質存在一些以大宗商品為導向的弱點。我們看到一些汽車銷售放緩，因為——尤其是那些面向歐洲和中國的汽車。因此，我不會說這些疲軟的部分必然是相互連結的，但我們正在觀察的市場中正在出現一些特殊的問題。

And the other thing is, I would say, generally, leverage levels are higher today than they were 5 years ago, 4 years ago. And companies, especially leverage buyouts that were very aggressive in nature and included significant synergy assumptions, I would say that those haven't worked out on a broad basis. And therefore, those companies that were supposed to grow into their capital structures have not, I would say, by and large. But there certainly are outliers there. There are businesses that have done quite well in executing on synergies. So I wouldn't say it's every business out there, but the markets have been very aggressive and forgiving, and that we expect will come home to roost at some point?

另一件事是，我想說，總體來說，今天的槓桿水準比 5 年前、4 年前要高。而公司，尤其是本質上非常激進並包含重大協同假設的槓桿收購，我想說的是，這些並沒有在廣泛的基礎上發揮作用。因此，我想說，那些本來應該發展到資本結構的公司總體上並沒有發展。但那裡肯定存在異常值。有些企業在執行綜效方面做得非常好。所以我不會說每個企業都是如此，但市場一直非常激進和寬容，我們預計在某個時候會回歸正常？

And the second question is that you'd mentioned that if you redeploy some of the assets from nonincome to income-producing that it'd basically benefit the ROE by about 40 basis points on an annualized basis. Can you give us a similar benchmark, if you increase leverage from 0.5x to 0.6x, what would be the incremental ROE benefit on an annualized basis? And is that a benefit? Is that a linear benefit?

第二個問題是，您提到，如果將一些資產從非收入性資產重新部署到創收性資產，那麼按年化計算，ROE 基本上會提高約 40 個基點。您能否給我們一個類似的基準，如果您將槓桿率從 0.5 倍提高到 0.6 倍，以年化計算，增量 ROE 收益是多少？這是一個好處嗎？這是線性收益嗎？

Yes, this is Armen, again, I think we should probably follow up off-line on that. I don't have that on the tip of my tongue, but we're happy to run that calculation and get it to you off-line, if you'd like.

是的，我是阿門，我想我們應該在線下跟進此事。我還沒有想到這一點，但如果您願意，我們很樂意進行計算並離線將其提供給您。

Yes. And Jim, it's Matt. I was never very good at math. So let me make sure I get the numbers right before we give it out on a recorded line.

是的。吉姆，是馬特。我的數學一直不太好。因此，在我們透過錄音方式給出數字之前，讓我確保我得到了正確的數字。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Mosticchio for any closing remarks.

我們的問答環節到此結束。我想將會議轉交給莫斯蒂奇奧先生發表閉幕詞。

Thank you again for joining us for our fourth quarter earnings conference call. A replay of this call will be available for 30 days on OCSL's website in the Investors section or by dialing (877) 344-7529 for U.S. callers or 1 (412) 317-0088 for non-U. S. callers, with the replay access code 10135791, beginning approximately 1 hour after this broadcast.

再次感謝您參加我們的第四季財報電話會議。本次電話會議的重播將在 OCSL 網站的投資者部分提供 30 天內的重播，或透過撥打 (877) 344-7529（美國電話）或 1 (412) 317-0088（非美國電話）重播。美國呼叫者，重播訪問代碼為 10135791，在本次廣播後約 1 小時開始。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。