Oaktree Specialty Lending Corp (OCSL) 2024 Q4 法說會逐字稿

Welcome, and thank you for joining Oaktree Specialty Lending Corporation's fourth fiscal quarter conference call. Today's conference call is being recorded. (Operator Instructions)

歡迎並感謝您參加橡樹專業貸款公司第四財季電話會議。今天的電話會議正在錄音。（操作員說明）

Before I pass the call over to the Oaktree team, I want to remind you that comments on today's call may include forward-looking statements reflecting Oaktree's current views with respect to future operating results and financial performance.

在將電話會議轉交給橡樹資本團隊之前，我想提醒您，今天電話會議的評論可能包括反映橡樹資本當前對未來營運績效和財務表現的看法的前瞻性陳述。

Actual results could differ materially from those implied or expressed in the forward-looking statements. Please refer to OCSL's SEC filings for a discussion of these factors in further detail. Oaktree undertakes no duty to update or revise any forward-looking statements.

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 OCSL 向 SEC 提交的文件，以了解這些因素的更詳細討論。橡樹資本不承擔更新或修改任何前瞻性陳述的責任。

I'd also like to remind you that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase any interest in any Oaktree fund.

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徵求購買任何橡樹基金任何權益的要約。

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

現在我想介紹一下投資者關係主管 Dane Kleven，他將主持今天的電話會議。克萊文先生，您可以開始了。

Thank you, operator, and thank you all for listening in. We very much appreciate your support of Oaktree Specialty Lending Corporation.

謝謝接線員，也謝謝大家的收聽。我們非常感謝您對橡樹專業貸款公司的支持。

I'd like to welcome you to our earnings call for the fourth fiscal quarter of 2024. 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. We encourage investors, the media, and others to review the information that is shared on our website.

歡迎您參加我們 2024 年第四財季的財報電話會議。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。我們鼓勵投資者、媒體和其他人查看我們網站上分享的資訊。

Joining us on the call today are Armen Panossian, Chief Executive Officer and Co-Chief Investment Officer; Matt Pendo, President; and Chris McKown, Chief Financial Officer and Treasurer.

今天加入我們電話會議的還有執行長兼聯席首席投資長 Armen Panossian；馬特·彭多，總裁；以及財務長兼財務主管 Chris McKown。

With that, I would now like to turn the call over to Matt to discuss our results.

現在，我想將電話轉給馬特，討論我們的結果。

Thanks, Dane, and welcome, everyone. Our adjusted NII for the fiscal fourth quarter ended September 30, 2024, was $45 million or $0.55 per share, which was consistent with our third-quarter results. NII for the quarter reflected our healthy origination and repayment activity, combined with the decrease in net expenses driven by our lower management fees that went into effect on July 1 and interest expense. This was partially offset by a modest decline in adjusted total investment income as certain investments were moved to nonaccrual status.

謝謝丹恩，歡迎大家。截至 2024 年 9 月 30 日的第四財季，調整後的 NII 為 4,500 萬美元，即每股 0.55 美元，這與我們第三季度的業績一致。本季的 NII 反映了我們健康的發起和還款活動，以及 7 月 1 日生效的管理費和利息費用降低導致的淨費用減少。由於某些投資轉為非應計狀態，調整後總投資收入略有下降，部分抵消了這種影響。

Full-year fiscal 2024 adjusted NII was $179 million or $2.23 per share compared to $178 million or $2.47 per share for fiscal year 2023. The dollar increase was driven by higher investment income generated from a larger average investment portfolio following last year's completion of our merger with Oaktree Strategic Income II, Inc., or OSI II impact of higher base rates and an increase in the prepayment fees and OID acceleration from successful investment exits.

2024 財年調整後的全年 NII 為 1.79 億美元，即每股 2.23 美元，而 2023 財年為 1.78 億美元，即每股 2.47 美元。美元上漲的推動因素是去年我們完成與橡樹戰略收益II, Inc. 的合併後，更大的平均投資組合產生了更高的投資收入，或OSI II 更高的基本利率以及預付款費用增加和OID加速的影響來自於成功的投資退出。

These drivers were offset by an increase in investments placed on non-accrual status and higher interest expense, primarily due to our floating rate liabilities. The year-over-year per share decrease in adjusted NII reflects a higher share count from the issuance of common shares.

這些驅動因素被非權責發生製投資的增加和利息支出的增加所抵消，這主要是由於我們的浮動利率負債所致。調整後的NII每股同比下降反映出普通股發行的股份數量增加。

During fiscal 2024, we continue to rotate into primarily first lien loans. Our first lien investments increased to 82% from 76% at fiscal year-end 2023. Concurrently, second lien investments decreased from 10% to 4%. Investments on non-accrual status at quarter end were 4% at fair value and 4.9% at cost compared to 3.7% and 5.7% last quarter.

在 2024 財年期間，我們繼續主要轉向第一留置權貸款。我們的第一留置權投資從 2023 財年末的 76% 增加到 82%。同時，第二留置權投資從 10% 降至 4%。季末非應計投資以公允價值計算為 4%，以成本計算為 4.9%，而上季分別為 3.7% 和 5.7%。

During the quarter, we successfully restructured two investments and removed them from nonaccrual. However, we placed three additional investments on nonaccrual status and took some further write-downs on certain investments.

在本季度，我們成功重組了兩項投資並將其從非應計項目中刪除。然而，我們將另外三項投資置於非應計狀態，並對某些投資進行了進一步減記。

Our net asset value per share decreased slightly to $18.09 from $18.19 last quarter. We are working closely with each company and using our resources and expertise to achieve successful outcomes for our shareholders.

我們的每股淨值從上季的 18.19 美元小幅下降至 18.09 美元。我們與每家公司密切合作，利用我們的資源和專業知識為股東取得成功。

Given that these non-accruals and additional write-downs had an impact on our earnings and net asset value, we waived $1.2 million of Part 1 incentive fees for the quarter. This is in addition to the $3.2 million of Part 1 incentive fees that we waived last quarter and $1.3 million of additional discretionary fees waived since the OSI II merger in January of last year.

鑑於這些非應計費用和額外減記對我們的收益和資產淨值產生了影響，我們放棄了本季 120 萬美元的第 1 部分激勵費用。除此之外，我們上季度免除了 320 萬美元的第 1 部分激勵費用，以及自去年 1 月 OSI II 合併以來免除的 130 萬美元額外酌情費用。

As a reminder, we implemented a permanent reduction in the base management fee from 1.5% to 1.0% of gross assets effective July 1, 2024. We hope these actions reflect our ongoing commitment to our shareholders.

謹此提醒，我們自 2024 年 7 月 1 日起將基本管理費從總資產的 1.5% 永久降低至 1.0%。我們希望這些行動體現了我們對股東的持續承諾。

Turning to investment activity. We originated $259 million in new investment commitments during the fourth quarter at a weighted average yield of 9.9% compared to 11.1% in the prior quarter. We were pleased with this level of activity, albeit at lower yields, reflective of the current market environment.

轉向投資活動。第四季我們發起了 2.59 億美元的新投資承諾，加權平均收益率為 9.9%，而上一季為 11.1%。我們對這種活動水平感到滿意，儘管收益率較低，這反映了當前的市場環境。

We continue to identify compelling investment opportunities across sponsored and non-sponsored companies as well as an undervalued publicly traded credits, while maintaining our disciplined and selective investment approach in a competitive environment.

我們繼續在贊助和非贊助公司以及被低估的公開交易信用中尋找引人注目的投資機會，同時在競爭環境中保持我們嚴格和選擇性的投資方法。

Paydowns and exits in the quarter generated $338 million in proceeds, up from $186 million in the third quarter. With refinancing activity increasing across the broader market, we have experienced higher levels of paydowns. We believe this speaks to the strength of our overall portfolio as well as our due diligence and investment process. These paydowns demonstrate the ability of our portfolio companies to successfully execute their business plans, positioning them to refinance debt at more attractive prices, reduce leverage or sell their businesses.

本季的付款和退出產生了 3.38 億美元的收益，高於第三季的 1.86 億美元。隨著整個市場的再融資活動增加，我們的還款水準也更高。我們相信，這證明了我們整體投資組合的實力以及我們的盡職調查和投資流程。這些付款證明了我們的投資組合公司成功執行其業務計劃的能力，使它們能夠以更具吸引力的價格進行債務再融資、降低槓桿率或出售其業務。

Turning to the liability side of our balance sheet. At fiscal year-end, we had substantial liquidity to fund our investment commitments and future investment opportunities. This included $908 million of undrawn capacity under our credit facilities and unrestricted cash and cash equivalents of $64 million.

轉向我們資產負債表的負債面。在財政年度末，我們擁有大量流動資金來為我們的投資承諾和未來的投資機會提供資金。其中包括我們信貸安排下的 9.08 億美元未動用能力以及 6,400 萬美元的不受限制的現金和現金等價物。

Total debt to equity was 1.12 times and net debt to equity was 1.07 times after adjusting for cash and cash equivalents. With respect to the dividend, our Board approved a quarterly dividend of $0.55 per share, consistent with prior quarterly distributions. This dividend is payable in cash on December 31, 2024, and to stockholders of record on December 16, 2024.

經現金及現金等價物調整後，總負債與股本比率為1.12倍，淨負債與股本比率為1.07倍。關於股息，我們的董事會批准了每股 0.55 美元的季度股息，與先前的季度分配一致。該股將於2024年12月31日以現金支付，並於2024年12月16日支付給在冊股東。

With that, I will turn the call over to Armen to provide more details on our portfolio and the market environment.

接下來，我會將電話轉給 Armen，以提供有關我們的投資組合和市場環境的更多詳細資訊。

Thank you, Matt, and hello, everyone. Before I review our portfolio activity, I'd like to provide a quick update on our leadership team.

謝謝你，馬特，大家好。在回顧我們的投資組合活動之前，我想快速介紹一下我們的領導團隊的最新情況。

I'm excited to announce the appointment of Raghav Khanna as Co-Chief Investment Officer for OCSL. Raghav joined Oaktree in 2012 as a member of our Global Opportunities Group before becoming a founding member of the strategic credit strategy in 2014, where he now serves as a co-portfolio manager and an investment committee member. His dedication and strategic insights have been instrumental in driving the growth of our platform, and I am looking forward to working alongside him as co-CIOs of OCSL.

我很高興地宣布任命 Raghav Khanna 為 OCSL 聯合首席投資長。Raghav 於 2012 年加入橡樹資本，擔任全球機會集團成員，隨後於 2014 年成為策略信貸策略的創始成員，目前擔任聯合投資組合經理和投資委員會成員。他的奉獻精神和策略洞察力對於推動我們平台的發展發揮了重要作用，我期待著與他一起作為 OCSL 的聯合 CIO 一起工作。

With that, I will now turn to our portfolio activity for the quarter and concluded observations in the current market environment. Our portfolio remained well diversified across 144 companies with a fair market value of over $3 billion at the end of the fourth quarter. In line with our objective to lend to the -- at the top of the capital structure, at quarter end, 82% of our portfolio was invested in first lien debt, which, as Matt mentioned, is up from 76% one year ago.

接下來，我將討論本季的投資組合活動，並總結對當前市場環境的觀察。我們的投資組合在 144 家公司中保持高度多元化，截至第四季度末，其公平市場價值超過 30 億美元。根據我們向資本結構頂層放貸的目標，截至季度末，我們投資組合的 82% 投資於第一留置權債務，正如馬特所提到的，這一比例高於一年前的 76%。

To mitigate risk in the current environment, we are pursuing and investing in a diverse group of industries and larger companies. In the fourth quarter, the median EBITDA for our portfolio of companies was $140 million and the median leverage was 5.2 times.

為了降低當前環境下的風險，我們正在尋求並投資多元化的行業和大型公司。第四季度，我們公司投資組合的 EBITDA 中位數為 1.4 億美元，槓桿率中位數為 5.2 倍。

This leverage ratio is roughly in line with the prior quarter, yet notably below the average for middle market companies. Our portfolio companies continue to perform well with a weighted average interest coverage ratio using current base rates at 2.3 times. During the fourth quarter, we invested $259 million into a diverse set of 9 new and 10 existing portfolio companies.

這一槓桿率與上一季大致一致，但明顯低於中間市場公司的平均值。我們的投資組合公司持續表現良好，使用目前基本利率計算的加權平均利息保障倍數為 2.3 倍。第四季度，我們向 9 家新投資組合公司和 10 家現有投資組合公司投資了 2.59 億美元。

Now I will provide details of a few key investments. I will begin with Legends Hospitality, a premium experience company that delivers holistic solutions, sports and entertainment organizations and venues.

現在我將提供一些關鍵投資的細節。我將從 Legends Hospitality 開始，這是一家提供整體解決方案、體育和娛樂組織及場館的優質體驗公司。

Legends was founded in 2008 by the ownership groups of the New York Yankees and Dallas Cowboys to manage concessions for two new stadiums. In August, Oaktree co-led a new $2 billion credit facility to support Legend's acquisition of ASM Global Parent, which provides venue management services to a global portfolio of over 350 stadiums, arenas, convention centers, and theaters.

Legends 於 2008 年由紐約洋基隊和達拉斯牛仔隊的所有權集團創立，負責管理兩個新體育場的特許權。8 月，橡樹資本共同主導了一項新的 20 億美元信貸安排，以支持聯想收購 ASM Global Parent，後者為全球超過 350 個體育場、競技場、會議中心和劇院提供場館管理服務。

Oaktree provided $145 million of the term loan, $17 million of the revolver, and $8.5 million of a delayed draw term loan. The term loan has a coupon of SOFR plus 5% and 2 points of OID. OCSL participated in $31 million of this deal.

橡樹資本提供了 1.45 億美元的定期貸款、1,700 萬美元的左輪手槍和 850 萬美元的延遲提取定期貸款。定期貸款的票息為 SOFR 加 5% 和 2 個點的 OID。OCSL 參與了這筆價值 3,100 萬美元的交易。

Next, Integrity Marketing is a leading independent marketing organization and omnichannel insurance technology company that focuses on life, health and wealth products with an emphasis on the senior market. In the fiscal fourth quarter, Oaktree participated in a new $6.5 billion credit facility to support Integrity's debt refinancing, future M&A pipeline and working capital.

接下來，Integrity Marketing是一家領先的獨立行銷機構和全通路保險科技公司，專注於人壽、健康和財富產品，並專注於老年人市場。在第四財季，橡樹資本參與了一項新的 65 億美元信貸安排，以支持 Integrity 的債務再融資、未來的併購管道和營運資金。

Oaktree provided $194 million of the term loan, $25.6 million of the revolver, and $137 million of the delayed draw term loan. The term loan has a coupon of SOFR plus 5% and 1 point of OID. OCSL participated in $36 million of this deal.

橡樹資本提供了 1.94 億美元的定期貸款、2,560 萬美元的循環貸款和 1.37 億美元的延遲提取定期貸款。定期貸款的票息為 SOFR 加 5% 和 1 個點的 OID。OCSL 參與了這筆價值 3,600 萬美元的交易。

We made another significant investment in Everbridge, a global software company that provides critical event management solutions to global corporations, government agencies, and non-profit institutions with security management solutions that help with incident preparedness, risk monitoring, and service reliability.

我們對Everbridge 進行了另一項重大投資，Everbridge 是一家全球軟體公司，為全球企業、政府機構和非營利組織提供關鍵事件管理解決方案，其安全管理解決方案有助於事件準備、風險監控和服務可靠性。

In September, Oaktree co-led a new $1.35 billion credit facility to fund a sponsor's acquisition of Everbridge. The facility consists of $1 billion first lien term loan, a $100 million revolving credit facility and a $250 million delayed draw term loan. Oaktree provided $159 million of the term loan, $16 million of the revolver, and $40 million of the delayed draw term. The term loan has a coupon of SOFR plus 5% and 0.5 point of OID. OCSL participated in $27 million of this deal.

9 月，橡樹資本共同領導了一項新的 13.5 億美元信貸安排，為贊助商收購 Everbridge 提供資金。該融資包括 10 億美元的第一留置權定期貸款、1 億美元的循環信貸融資和 2.5 億美元的延遲提取定期貸款。橡樹資本提供了 1.59 億美元的定期貸款、1,600 萬美元的左輪手槍和 4,000 萬美元的延遲提款期限。定期貸款的票息為 SOFR 加 5% 和 0.5 點 OID。OCSL 參與了這筆交易的 2700 萬美元。

These investments demonstrate the power of the Oaktree platform, which is a key competitive advantage that gives us access to compelling investment opportunities as well as the ability to invest in larger transactions.

這些投資展示了橡樹平台的力量，這是一個關鍵的競爭優勢，使我們能夠獲得引人注目的投資機會以及投資更大交易的能力。

Now let's take a closer look at the credit quality of the portfolio. As Matt noted, we experienced an increase in the net number of non-accrual loans during the fourth quarter. While our team successfully restructured two investments that were previously on non-accrual status, we added Telestream Holdings and the second out tranches of Astra Acquisition Corp and nThrive to non-accrual status during the quarter.

現在讓我們仔細看看投資組合的信用品質。正如馬特指出的那樣，第四季度我們的非應計貸款淨數量有所增加。雖然我們的團隊成功重組了先前處於非應計狀態的兩項投資，但我們在本季度將 Telestream Holdings 以及 Astra Acquisition Corp 和 nThrive 的第二批投資添加到了非應計狀態。

Looking at the new additions, I'll begin with Astra Acquisition Corporation. Astra Acquisition Corporation is a provider of cloud-based software solutions for higher educational institutions. Our original investment in Astra was a first lien term loan that was exchanged into a Term Loan A and Term Loan B through a restructuring that closed in April of 2024.

看看新增的成員，我將從 Astra Acquisition Corporation 開始。Astra Acquisition Corporation 是一家為高等教育機構提供基於雲端的軟體解決方案的供應商。我們對 Astra 的原始投資是第一筆留置權定期貸款，透過 2024 年 4 月結束的重組轉換為定期貸款 A 和定期貸款 B。

Recently, bookings have trended lower, negatively impacting the company's EBITDA and the price at which these loans are quoted in the secondary market. These events caused us to put the Term Loan B, which is a second out tranche on non-accrual. We are working closely with management and the lender group to address Astra's declining revenue with the goal of maximizing value of our debt position.

最近，預訂量呈下降趨勢，對該公司的 EBITDA 以及這些貸款在二級市場的報價產生了負面影響。這些事件導致我們將定期貸款 B（第二批）設為非應計利息。我們正在與管理層和貸款機構密切合作，解決阿斯特拉收入下降的問題，目標是實現債務狀況價值最大化。

Now I will discuss nThrive, a software company that helps healthcare clients manage their revenue and cash flow, in which we hold both a first lien and second lien term loan position. The second lien term loan was placed on non-accrual as a result of declining bookings and lower retention rates. We continue to closely monitor this name.

現在我將討論 nThrive，這是一家幫助醫療保健客戶管理收入和現金流的軟體公司，我們在該公司同時持有第一留置權和第二留置權定期貸款頭寸。由於預訂量下降和保留率較低，第二筆留置權定期貸款被設定為非應計利息。我們將繼續密切關注這個名字。

Next, Telestream Holdings is a video software platform that provides on-demand, digital video tools, and workflow solutions to a diversified customer base. Our investment in Telestream includes a first lien term loan and a small revolver. Although there was no valuation change at quarter end, we proactively placed both loans on non-accrual due to liquidity constraints at the company and concerns about collecting coupon interest.

接下來，Telestream Holdings 是一個視訊軟體平台，為多元化的客戶群提供點播、數位視訊工具和工作流程解決方案。我們對 Telestream 的投資包括第一留置權定期貸款和小型左輪手槍。儘管季度末估值沒有變化，但由於公司流動性限制以及對收取票面利息的擔憂，我們主動將這兩筆貸款設為非應計貸款。

Finally, as Matt mentioned, we restructured two names previously on our non-accrual list, Pluralsight and Impel. For Pluralsight in August, along with other lenders, Oaktree completed a recapitalization of the company equitizing part of our former position, receiving some take-back debt and providing additional capital to the company in the form of a delayed draw term loan and a revolving credit facility. We are working with management and the other lenders post reorganization and are confident in our ability to work through situations like these.

最後，正如 Matt 所提到的，我們重組了先前在非應計清單上的兩個名稱：Pluralsight 和 Impel。八月份，橡樹資本與其他貸方一起為Pluralsight 完成了公司的資本重組，將我們之前的部分頭寸進行了股權化，接收了一些收回債務，並以延遲提取定期貸款和循環信貸的形式向公司提供了額外資本設施。我們正在與管理層和重組後的其他貸方合作，並對我們解決此類情況的能力充滿信心。

In the case of Impel, the company's primary product, Trudhesa, was acquired by a third party, who will be seeking to monetize the drug through a reinvigorated sales effort. In connection with the acquisition, OCSL and other debtors received a cash payment and the right to receive future payments if the acquirer achieves certain sales milestones.

以 Impel 為例，該公司的主要產品 Trudhesa 被第三方收購，第三方將尋求透過重振銷售努力將該藥物貨幣化。透過此次收購，OCSL 和其他債務人收到了現金付款，並且如果收購者實現了某些銷售里程碑，則有權收到未來付款。

Now turning to our view of the market environment. Although the fixed income markets have recently benefited from lower short-term interest rates, we remain in an elevated interest rate environment, which has materially increased the cost of debt capital especially for highly levered companies. Against this backdrop, we are in constant communication with our portfolio of companies to evaluate their businesses, end markets, and ability to navigate the current interest rate environment.

現在轉向我們對市場環境的看法。儘管固定收益市場最近受益於較低的短期利率，但我們仍然處於較高的利率環境中，這大大增加了債務資本成本，特別是對於高槓桿公司而言。在此背景下，我們與我們的投資組合公司保持持續溝通，以評估他們的業務、終端市場以及應對當前利率環境的能力。

Our goal is to identify any potential issues as early as possible and to work collaboratively with our borrowers to resolve them. During the fiscal fourth quarter, credit markets continue to rally as the Fed initiated its easing cycle with a 50 basis point cut to the Fed funds target rate in September and another 25 basis point cut earlier this month. Base rates declined from the prior quarter and credit spreads continue to tighten.

我們的目標是儘早發現任何潛在問題，並與借款人合作解決這些問題。在第四財季，隨著聯準會啟動寬鬆週期，9月聯邦基金目標利率下調50個基點，本月稍早又調降25個基點，信貸市場持續上漲。基準利率較上季下降，信貸利差持續收緊。

The more active broadly syndicated loan market in combination with large amounts of capital is driving lenders to aggressively compete for new opportunities, which is also improving deal terms for borrowers. This has driven an increase in repricings and refinancing for many issuers in the private credit space.

更活躍、廣泛的銀團貸款市場加上大量資本正在推動貸款機構積極競爭新的機會，這也改善了借款人的交易條件。這推動了私人信貸領域許多發行人的重新定價和再融資增加。

M&A activity has continued to trend higher and the industry continues to be optimistic regarding future volume, anticipating increased activity in early 2025. Private market borrowers generally remain healthy, demonstrating stable revenues and EBITDA growth.

併購活動持續呈上升趨勢，業界對未來交易量持續持樂觀態度，預計 2025 年初活動將會增加。私募市場借款人普遍保持健康，表現出穩定的收入和 EBITDA 成長。

Interest coverage ratios continue to be a focus in the market. And with spreads tightening and SOFR rates declining, the average interest coverage ratio is expected to increase. Additionally, the fair value of direct lending investments increased from last quarter due to tighter credit spreads and overall solid fundamental company performance.

利息保障倍數仍是市場關注的焦點。隨著利差收緊和 SOFR 利率下降，平均利息覆蓋率預計將上升。此外，由於信貸利差收緊及公司整體基本面穩健表現，直接貸款投資的公允價值較上季增加。

Turning to the impact of the US election. President-elect Trump is widely regarded as a pro business leader. He has committed to lowering corporate taxes, reducing regulation, and easing restrictions on energy production. These measures are generally favorable for corporate profitability. Moreover, we anticipate a surge in M&A and IPO activity under Trump's administration. This uptick in dealmaking is likely to create a strong pipeline of deals in 2025.

轉向美國大選的影響。當選總統川普被廣泛認為是一位親商界領袖。他致力於降低企業稅、減少監管並放鬆對能源生產的限制。這些措施總體上有利於企業獲利。此外，我們預計川普政府領導下的併購和首次公開募股活動將激增。交易量的增加可能會在 2025 年創造大量交易。

As I said earlier, we remain focused on the inherent risks of the current market. While the emergency inflation rate hike cycle is over and short-term rates have declined recently, we do not believe the Fed will take rates back to the ultra-low levels of the last decade. In other words, rates are likely to remain higher for an extended period, and this could be challenging for companies with elevated debt levels.

正如我之前所說，我們仍然關注當前市場的固有風險。儘管緊急通膨升息週期已經結束，短期利率最近有所下降，但我們認為聯準會不會將利率恢復到過去十年的超低水平。換句話說，利率可能會在較長一段時間內保持在較高水平，這對於債務水平較高的公司來說可能是一個挑戰。

While inflation has recently subsided, high costs remain a challenge for companies and consumers. The environment appears to be improving. However, we believe it is prudent to remain cautious. We are closely watching market conditions and lenders' appetite to refinance companies with maturing debt as we believe companies refinancing needs, they have difficulty obtaining cost-effective capital and credit becomes less available.

儘管通貨膨脹最近有所消退，但高成本仍然是企業和消費者面臨的挑戰。環境似乎正在改善。然而，我們認為保持謹慎是明智之舉。我們正在密切關注市場狀況和貸方為債務到期的公司再融資的意願，因為我們認為，有再融資需求的公司很難獲得具有成本效益的資本，並且信貸變得越來越少。

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

現在我將把電話轉給克里斯，更詳細地討論我們的財務表現。

Thank you, Armen. As Matt noted for our fourth fiscal quarter, we reported adjusted net investment income of $45.2 million or $0.55 per share, which was consistent with the prior quarter ending June 30, 2024.

謝謝你，阿門。正如馬特在第四財季所指出的那樣，我們報告的調整後淨投資收益為 4,520 萬美元，即每股 0.55 美元，與截至 2024 年 6 月 30 日的上一季一致。

Adjusted total investment income for the quarter declined $0.6 million or about $0.01 from the prior quarter. This was driven by a $2.7 million decrease in interest income resulting from placing certain investments on nonaccrual status, smaller average portfolio size and the impact of spread compression. These factors were partially offset by increased OID acceleration in connection with repayments.

本季調整後的總投資收入下降了 60 萬美元，比上一季下降了約 0.01 美元。這是由於將某些投資置於非應計狀態、較小的平均投資組合規模以及利差壓縮的影響，導致利息收入減少 270 萬美元。這些因素被與還款相關的 OID 加速的增加部分抵消。

We also had a $0.3 million decline in dividend income from the Kemper JV. These decreases were offset by a $2.4 million increase in fee income, which was primarily driven by pre-payment and exit fees.

來自 Kemper JV 的股息收入也減少了 30 萬美元。這些減少被費用收入增加 240 萬美元所抵消，這主要是由預付款和退出費推動的。

Non-recurring income generated in connection with successful investment exits did have a larger than neutral impact on our results this quarter. To give you a sense of magnitude, our non-recurring income in the September quarter was about $0.09, whereas we generally see nonrecurring income in the neighborhood of about $0.03 to $0.05 per share per quarter.

與成功投資退出相關的非經常性收入確實對我們本季的業績產生了大於中性的影響。為了讓您了解規模大小，我們在 9 月季度的非經常性收入約為 0.09 美元，而我們通常認為每季每股非經常性收入約為 0.03 至 0.05 美元。

Net expenses declined $0.6 million from the prior quarter, driven by a $2.5 million decrease in management fees, net of fees waived. $0.5 million of lower interest expense from lower average borrowings and $0.2 million of lower professional fees, partially offset by $2.6 million of higher Part 1 incentive fees, net of fees waived.

淨費用較上一季下降 60 萬美元，因為管理費（扣除免除的費用後）減少了 250 萬美元。平均借款減少導致利息費用減少 50 萬美元，專業費用減少 20 萬美元，部分被第 1 部分激勵費用增加 260 萬美元（扣除免除的費用）所抵銷。

Now moving to our balance sheet. OCSL's net leverage ratio at quarter end was 1.07 times, down from 1.10 times at the end of the third quarter. Repayments and sales of $338 million outpaced our newly funded investments of $233 million. This, in combination with the markdowns this quarter resulted in a slight decline in the size of our portfolio.

現在轉向我們的資產負債表。OCSL季末的淨槓桿率為1.07倍，低於第三季末的1.10倍。還款和銷售額達 3.38 億美元，超過了我們新融資的 2.33 億美元投資。再加上本季的降價，導致我們的投資組合規模略有下降。

Our net leverage remained within our targeted range of 0.9 times to 1.25 times. As of September 30, total debt outstanding was $1.66 billion and including the effect of our interest rate swap agreements had a weighted average interest rate of 6.7%, which is slightly down from last quarter.

我們的淨槓桿率維持在0.9倍至1.25倍的目標範圍內。截至 9 月 30 日，未償債務總額為 16.6 億美元，考慮到利率互換協議的影響，加權平均利率為 6.7%，比上季略有下降。

Unsecured debt represented 57% of total debt at quarter end, up marginally from the prior quarter. Our liquidity remains strong, including $64 million of cash and $908 million of undrawn capacity on our credit facilities. Unfunded commitments excluding those related to the joint ventures were $284 million with approximately $248 million eligible to be drawn immediately. The remaining $36 million is subject to certain milestones that must be met by portfolio companies before the funds can be drawn.

截至季末，無擔保債務佔總債務的 57%，較上一季略有上升。我們的流動性依然強勁，包括 6,400 萬美元的現金和 9.08 億美元的未動用信貸額度。除與合資企業相關的承諾外，未提供資金的承諾額為 2.84 億美元，其中約 2.48 億美元有資格立即提取。剩餘的 3,600 萬美元需要達到某些里程碑，投資組合公司必須達到這些里程碑才能提取資金。

Now turning to our two joint ventures. Together, the JVs currently hold $454 million of investments primarily in broadly syndicated loans spread across 49 portfolio companies. For the quarter, the JVs again generated attractive annualized ROEs, which when combined, were approximately 11.2%.

現在談談我們的兩家合資企業。目前，合資企業總共持有 4.54 億美元的投資，主要分佈在 49 家投資組合公司的廣泛銀團貸款中。本季度，合資企業再次產生了頗具吸引力的年化股本回報率，合計約為 11.2%。

Leverage at the JVs was 1.4 times in aggregate at quarter end, flat with the last quarter due to a slight increase in unrealized depreciation in the underlying portfolios partially offset by repayments received from portfolio companies during the quarter.

截至季末，合資企業的槓桿率總計為 1.4 倍，與上季持平，原因是基礎投資組合的未實現折舊略有增加，部分被投資組合公司在本季度收到的還款所抵銷。

With that, we appreciate your participation on the call today and for your interest in OCSL. We are happy to take your questions now. Operator, please open the lines.

在此，我們感謝您參加今天的電話會議以及對 OCSL 的興趣。我們很高興現在回答您的問題。接線員，請開通線路。

(Operator Instructions) Paul Johnson, KBW.

（操作員說明）Paul Johnson，KBW。

Thanks. Good morning. Thanks for taking my questions. Just on the incentive fee waiver this quarter. Just trying to understand if this is going to be something that the adviser is committed to on a go-forward basis to the extent that NII trends below the $0.55 dividend?

謝謝。早安.感謝您回答我的問題。只是關於本季的激勵費減免。只是想了解，在 NII 趨勢低於 0.55 美元股息的情況下，顧問是否會承諾繼續這樣做？

Hey, Paul. It's Matt Pendo. Thanks for the question. So the -- this quarter, we announced a -- we described it as a discretionary fee waiver of $1.2 million. As you mentioned, last quarter, there was another -- the quarter prior to that, there was another discretionary fee waiver of $3.2 million.

嘿，保羅。我是馬特·彭多。謝謝你的提問。因此，本季度，我們宣布了 120 萬美元的酌情費用減免。正如您所提到的，上個季度，還有另一個 320 萬美元的酌情費用減免。

We view those as discretionary, not permanent. So that's kind of how we're looking at it kind of quarter to quarter. This -- the July -- starting July 1 is when the management fee was reduced to 1%, that was permanent. So that's kind of how we approach the incentive fee waiver. And then obviously, the 1% management fee is permanent.

我們認為這些是酌情決定的，而不是永久性的。這就是我們每季的看法。這個——7 月——從 7 月 1 日開始，管理費降低到 1%，這是永久性的。這就是我們處理激勵費用減免的方式。顯然，1% 的管理費是永久性的。

Got it. Thanks for that. And then just on a few credits in the portfolio. The nThrive obviously going on non-accrual this quarter, but it looked like it was just marked incrementally higher in the quarter. Thrasio also on non-accrual looks like it's still had a fairly strong mark quarter over quarter.

知道了。謝謝你。然後只是投資組合中的一些學分。nThrive 顯然本季繼續非應計項目，但看起來本季它只是逐漸走高。Thrasio 在非應計利潤方面看起來也季度比上一季仍有相當強勁的表現。

How do you feel, I guess, in terms of how comfortable are you with where either of those loans are having -- especially Thrasio which has been on non-accrual a little bit longer, I mean are we -- is that investment approaching point of resolution anytime soon? Is there any sort of update there?

我想，就您對其中任何一筆貸款的舒適度而言，您感覺如何——尤其是 Thrasio，它的非應計利息時間更長一點，我的意思是我們——是投資接近點很快就會有決議嗎？有任何更新嗎？

Thanks for the question. This is Armen. On Thrasio I think, look, this is an execution story that's going to take another few quarters. I wouldn't say that it is close to a resolution that we would think is value maximizing in the near term.

謝謝你的提問。這是阿爾門。在 Thrasio 上，我認為，看，這是一個執行故事，還需要幾個季度的時間。我不會說它接近我們認為在短期內價值最大化的解決方案。

For FinThrive or nThrive, as it's known, there is public information out there that -- a press release that was disclosed yesterday, which we think is actually positive for the company and its stability. And we think that, that business is well positioned. But certainly, has some execution to do, and it's -- and has a lot of engagement from its sponsor. We are watching it closely, but I think FinThrive or nThrive and Thrasio are in very different positions.

對於 FinThrive 或 nThrive 來說，眾所周知，有公開資訊——昨天披露的新聞稿，我們認為這實際上對公司及其穩定性是積極的。我們認為，該業務定位良好。但當然，還有一些執行工作要做，而且它的贊助商也有很多參與。我們正在密切關注，但我認為 FinThrive 或 nThrive 和 Thrasio 的立場非常不同。

Appreciate that. That's helpful. And then on Pluralsight, I realize at this point, after being restructured, it's not as large of an investment in the portfolio. But I was wondering if you could tell us, I mean, within the delayed draw or the revolver, I should say, is there -- the loan is still on PIK at this point. I mean is there anything that restricts the borrower from borrowing on the revolver to pay the interest on the restructured loan?

很欣賞這一點。這很有幫助。然後在 Pluralsight 上，我意識到，重組後，投資組合中的投資不再那麼大。但我想知道你是否可以告訴我們，我的意思是，在延遲提款或左輪手槍中，我應該說，是否存在 - 貸款目前仍在 PIK 上。我的意思是，是否有任何因素限制借款人借用左輪手槍來支付重組貸款的利息？

I mean the revolver does have covenants and restrictions. I would need to give you a more detailed answer with the legal REIT. But that isn't the intention to draw on the revolver to pay the coupon. The revolver is meant to support the business as it repositions itself or strengthens its position, it's not meant to pay coupon interest.

我的意思是左輪手槍確實有契約和限制。我需要給你一個關於合法房地產投資信託基金的更詳細的答案。但這並不是用左輪手槍來支付優惠券的意圖。左輪手槍旨在支持企業重新定位或加強其地位，而不是支付票面利息。

Got it. And last one for me. If we get -- if 2025 next year ends up being a good year, and we have a very good wave of activity in the market. I mean how do you feel about kind of terms and covenants in the market? Do you think that direct lenders are going to be able to hold the line on kind of further covenant and term erosion? And kind of where do you think we stand in terms of how documents are going to be holding up in the market?

知道了。最後一張給我。如果我們得到——如果明年 2025 年最終是一個好年頭，並且我們的市場活動非常活躍。我的意思是，您對市場上的條款和契約有何看法？您認為直接貸款人是否能夠控制住進一步的契約和期限侵蝕？您認為文件在市場上的地位如何？

Sure. I think in the lower middle market and the core middle market, so lower middle market between -- being companies with $20 million of EBITDA or lower, core middle market being $20 million to $70 million of EBITDA. I think in those two categories, we should expect to see reasonably good covenants, tested quarterly reasonably good protections in terms of stripping collateral away from lenders.

當然。我認為在中低階市場和核心中端市場，所以中低階市場是EBITDA 2000萬美元或更低的公司，核心中端市場是EBITDA在2000萬美元到7000萬美元之間。我認為在這兩個類別中，我們應該期望看到相當好的契約，並在從貸方剝離抵押品方面每季測試相當好的保護措施。

I think as you get larger as you get to $100 million, $150 million, $200 million of EBITDA, those businesses or those borrowers, comp their leverage terms to what could be available in the broadly syndicated loan markets, which are much weaker covenants. And therefore, I think there has been covenant erosion in that very large end of the market.

我認為，當你的規模越來越大，EBITDA 達到1 億美元、1.5 億美元、2 億美元時，這些企業或借款人就會將他們的槓桿條款與廣泛的銀團貸款市場上可用的條款進行比較，而這些契約則弱得多。因此，我認為在這個非常大的市場末端存在著契約侵蝕。

And I would think, though, that as deal flow picks up, that some of those covenants will come back on the large cap end. And on the core middle market and on the lower middle market, and I think they will continue to strengthen a little bit.

不過，我認為，隨著交易量的增加，其中一些契約將在大盤股上回歸。在核心中端市場和中低階市場上，我認為它們將繼續增強一點。

I think over the last 12 months or so, there's been a condition where there haven't been that many deals, and there has been a substantial amount of capital chasing those deals. So we have seen a tightening of spreads in the last 12 to 24 months, and we have generally seen a little bit of a loosening of covenants especially in that large cap end of the market.

我認為在過去 12 個月左右的時間裡，存在這樣一種情況：沒有那麼多交易，但有大量資本在追逐這些交易。因此，我們在過去 12 至 24 個月中看到利差收緊，我們通常看到契約有所放鬆，尤其是在市場的大盤股方面。

And I think more deal flow will help to counter some of that. But it won't -- I don't think it will completely undo what has happened in terms of legal protections or spread compression in the market.

我認為更多的交易流量將有助於解決其中的一些問題。但它不會——我認為它不會完全消除市場上法律保護或價差壓縮方面發生的事情。

(Operator Instructions) Melissa Wedel, JPMorgan.

（操作員指示）Melissa Wedel，摩根大通。

Good morning. If I'm reading between the lines a little bit, regarding your comments on the investment environment right now, it sounds like you're not necessarily expecting a normally large December quarter like we typically see on a seasonal basis, and you're sort of expecting that activity to pick up in early '25. Am I interpreting that right?

早安.如果我從字裡行間解讀一下，關於您現在對投資環境的評論，聽起來您並不一定會像我們通常在季節性基礎上看到的那樣，期待一個通常較大的 12 月季度，而且您認為預計該活動將在25 年初恢復。我這樣解釋對嗎？

Yeah. This is Armen, Melissa. We don't want to make forward-looking statements. And I would say that it's very hard to predict sort of fourth quarter and first quarter sometimes because deals that are slotted to happen in the fourth quarter, sometimes slip into the first quarter. Sometimes they're accelerated into the fourth quarter, which is more rare.

是的。這是阿門，梅麗莎。我們不想做出前瞻性陳述。我想說，有時很難預測第四季和第一季的情況，因為原定在第四季發生的交易有時會滑到第一季。有時他們會加速進入第四季度，這種情況更為罕見。

I would just say that over an extended period of time over the next 12 to 24 months with lower rates and with the decline in spreads that we've seen over the last 12 to 24 months, the expectation and some of the conversations that we've been having with sponsors and with non-sponsored companies has certainly picked up. The velocity of those conversations has picked up. It's hard to predict one quarter than the next, though.

我只想說，在未來 12 至 24 個月的較長一段時間內，利率較低，隨著我們在過去 12 至 24 個月中看到的利差下降，我們的預期和一些對話與贊助商和非贊助公司的合作肯定有所回升。這些對話的速度已經加快。不過，很難預測一個季度和下一個季度的情況。

Okay. Fair enough. I also wanted to go back to the JVs. I'm wondering -- we've seen that slip a little bit in terms of portfolio allocation year over year. I'm wondering if you see an opportunity, particularly in a more compressed spread environment to sort of further optimize those JVs and maybe generate some incremental income, and how that might be sized? I appreciate your thoughts.

好的。很公平。我也想回到合資企業。我想知道 - 我們已經看到投資組合分配方面逐年下滑。我想知道您是否看到了機會，特別是在更壓縮的傳播環境中，可以進一步優化這些合資企業並可能產生一些增量收入，以及如何確定其規模？我很欣賞你的想法。

Sure. This is Armen again. We're always looking at optimizing the JVs. There are ways that we think we could do that. So I do think that there are some ways to get a little bit more return out of them. We have JV partners, however, so we -- and we are in constant dialogue with them, but expansion of those JVs really is a partnership.

當然。這又是阿們。我們一直在尋求優化合資企業。我們認為有一些方法可以做到這一點。所以我確實認為有一些方法可以從中獲得更多回報。然而，我們有合資夥伴，所以我們一直在與他們對話，但這些合資企業的擴張實際上是一種夥伴關係。

And (technical difficulty) at this time about expanding those JVs. But we are constantly looking at the portfolio allocation there, the nature of the portfolio, public versus private positions as well as the quantum and cost of the leverage. So we will always look to optimize those for the JVs and for OCSL.

而此時關於擴大這些合資企業的（技術困難）。但我們不斷關注那裡的投資組合配置、投資組合的性質、公共頭寸與私人頭寸以及槓桿的數量和成本。因此，我們將始終尋求針對合資企業和 OCSL 進行最佳化。

A quick follow-up there. In terms of the level of leverage in each of the JVs right now, can you give us just an update on how you're thinking about the current leverage and whether within the existing framework that's there if there's an opportunity to increase the capacity just through higher leverage? Thanks.

那裡有一個快速跟進。就目前每個合資企業的槓桿水平而言，您能否向我們介紹一下您對當前槓桿的看法，以及在現有框架內是否有機會透過以下方式提高產能：槓桿更高？謝謝。

Sure. I mean the leverage levels there are in the -- above 1 times. And we think -- sorry, and on a combined basis between the two JVs, it's about 1.4 times. We are looking to take it up over time. It's not going to be a significant and sudden increase, but we do think that there's a little bit of leverage capacity there to increase given the nature of those portfolios on the -- the performing names in those portfolios are largely publicly traded debt that you can get a much higher than 1.4 times leverage multiple on.

當然。我的意思是槓桿水平在 1 倍以上。我們認為 - 抱歉，兩家合資企業的綜合成長率約為 1.4 倍。我們希望隨著時間的推移逐步解決這個問題。這不會是一個顯著和突然的增長，但我們確實認為，考慮到這些投資組合的性質，槓桿能力有一點點增加——這些投資組合中的表現良好的名字主要是公開交易的債務，你可以得到遠高於1.4倍的槓桿倍數。

And we do have some legacy positions in those JVs that existed prior to Oaktree's assumption of the management of OCSL that we're consistently or constantly looking to restructure and turn into performing credit assets for those JVs. And we will look to rotate out of the privates in there and make it largely a broadly syndicated loan portfolio with some increases in leverage beyond the 1.4 times that there is currently there.

我們確實在這些合資企業中擁有一些在橡樹資本接管 OCSL 管理權之前就存在的遺留職位，我們一直或不斷地尋求重組並將其轉化為這些合資企業的履約信貸資產。我們將尋求從那裡的私人貸款中撤出，使其成為一個廣泛的銀團貸款組合，槓桿率會增加，超過目前的 1.4 倍。

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

我們的問答環節到此結束。我想將會議轉回給戴恩·克萊文 (Dane Kleven) 發表閉幕詞。

Thank you all for joining today's call and for your continued interest in OCSL. Please reach out if you have any additional questions. We appreciate your time today.

感謝大家參加今天的電話會議以及對 OCSL 的持續關注。如果您還有任何其他問題，請與我們聯絡。我們非常感謝您今天抽出時間。

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。