Oaktree Specialty Lending Corp (OCSL) 2025 Q2 法說會逐字稿

Welcome and thank you for joining Oaktree Specialty Lending Corporation, second fiscal quarter 2025 conference call. Today's conference call has been recorded. (Operator Instructions)

歡迎並感謝您參加 Oaktree Specialty Lending Corporation 2025 財年第二季電話會議。今天的電話會議已錄音。（操作員指示）

Before we begin, I want to remind you that comments on today's call include forward-looking statements reflecting current views with respect to, among other things, future operating results and financial performance. Actual results could differ materially from those implied or expressed in the forward-looking statements. Please refer to the relevant SEC filings for discussion of these factors in further details. Oaktree undertakes no duty to update or revise any forward-looking statements.

在我們開始之前，我想提醒您，今天電話會議上的評論包括前瞻性陳述，反映了對未來經營業績和財務業績等方面的當前看法。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。有關這些因素的更多詳細討論，請參閱相關的 SEC 文件。Oaktree 不承擔更新或修改任何前瞻性聲明的義務。

I'd also like to remind you that nothing on this call constitute an offer to sell or solicitation of an offer to purchase any interest in Oaktree funds. Investors and others should know that OCSL 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 is shared on its website.

我還想提醒您，本次電話會議中的任何內容均不構成出售或購買 Oaktree 基金任何權益的要約。投資者和其他人應該知道，OCSL 使用其公司網站的投資者部分來發布重要資訊。該公司鼓勵投資者、媒體和其他人查看其網站上分享的資訊。

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

現在，我想介紹 OCSL 投資者關係主管克拉克·庫裡 (Clark Koury)，他將主持今天的電話會議。庫裡先生，您可以開始。

Thank you, operator. Our second quarter earnings release, which we issued this morning along with the accompanying slide presentation can be accessed on the Investor section of our website oaktreespecialtylending.com.

謝謝您，接線生。我們今天早上發布的第二季度收益報告以及隨附的幻燈片演示可以在我們網站 oaktreespecialtylending.com 的投資者部分找到。

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

今天與我一起參加電話會議的還有執行長兼聯席首席投資長 Armen Panossian、總裁 Matt Pendo 和財務長兼財務主管 Chris McKown。

I'll now turn the call over to Matt to provide an overview of our performance during the quarter and a couple of updates with regard to our capital structure. Matt?

現在我將把電話轉給馬特，讓他概述我們本季的業績以及有關我們資本結構的一些最新情況。馬特？

Thanks, Clark, and thank you to everyone for joining today. Adjusted net investment income was $39 million or $0.45 per share compared to $45 million or $0.54 per share in the first quarter. Our net asset value was $16.75 per share versus $17.63 in the prior quarter. These results reflect ongoing challenges with a few portfolio company investments, which we have been and continue to work towards restructuring or exiting.

謝謝，克拉克，也謝謝大家今天的參加。調整後的淨投資收益為 3,900 萬美元或每股 0.45 美元，而第一季為 4,500 萬美元或每股 0.54 美元。我們的淨資產價值為每股 16.75 美元，而上一季為 17.63 美元。這些結果反映了一些投資組合公司投資的持續挑戰，我們一直在並將繼續努力進行重組或退出。

We moved several of these investments to non-accrual and took additional write downs. As a result, investments on non-accrual status increased to 4.6% and 7.6% of fair market value and costs respectively. This compares to 3.9% and 5.1% in the first quarter.

我們將其中幾項投資轉為非應計投資，並進行了額外的減記。結果，非應計狀態的投資分別增加到公平市場價值和成本的 4.6％和 7.6％。相比之下，第一季分別為 3.9% 和 5.1%。

On the positive side, we made progress in resolving several investments on non-accrual, including exiting our loan position in SVP-Singer, where we received proceeds totaling $5.7 million which was consistent with our mark as of December 31. We've also seen some increased sales activity in Avery, a luxury mixed use building in San Francisco. Sales picked up in the second half of calendar year 2024, and the trend has continued thus far into 2025.

積極的一面是，我們在解決幾項非應計投資方面取得了進展，包括退出我們在 SVP-Singer 的貸款頭寸，我們獲得的收益總計 570 萬美元，這與我們截至 12 月 31 日的業績一致。我們也看到舊金山豪華混合用途建築艾佛瑞 (Avery) 的銷售活動增加。2024 年下半年銷售額有所回升，這一趨勢一直持續到 2025 年。

Proceeds from sales go to repaying our loan, enabling us to redeploy capital into new income-generating investments. During the last quarter, we received proceeds totaling 10% of our cost bases, and we expect to receive additional repayments next quarter. In addition, in April, we received nearly $100 million from repayments on debt investments, all of which were realized as small premiums as compared to our March 31 valuation.

銷售所得用於償還貸款，使我們能夠將資本重新部署到新的創收投資中。上個季度，我們收到的收益總計相當於成本基礎的 10%，我們預計下個季度將收到額外的還款。此外，4 月份，我們從債務投資償還中獲得了近 1 億美元的回報，與我們 3 月 31 日的估值相比，這些回報均為小額溢價。

Now turning to our dividend. In line with our new dividend policy, we announced last quarter, our Board approved the base dividend of $0.40 per share, and a variable supplemental dividend of $0.02 per share for the second quarter.

現在談談我們的股息。根據我們上個季度宣布的新股息政策，董事會批准第二季每股 0.40 美元的基本股息和每股 0.02 美元的浮動補充股息。

With regard to our balance sheet, we successfully issued new unsecured bonds that mature in 2030 to refinance our existing bonds that matured in February 2025. Additionally, shortly after the quarter end, we successfully amended our senior security revolving credit facility, extending its maturity and reducing the interest rate from SOFR plus-2% to a range of SOFR plus-1.75% to 1.875%.

就我們的資產負債表而言，我們成功發行了 2030 年到期的新無擔保債券，以對我們 2025 年 2 月到期的現有債券進行再融資。此外，在本季末之後不久，我們成功修改了高級證券循環信貸安排，延長了其期限，並將利率從 SOFR 加 2% 降低至 SOFR 加 1.75% 至 1.875% 的範圍。

We appreciate the support of our bank group and believe that lower interest expense and associated fees will have a favorable impact on our net investment income. With these positive changes to our capital structure and our leverage at its lowest level in over three years, we have ample dry powder for new investments as we navigate this volatile period.

我們感謝銀行集團的支持，並相信較低的利息支出和相關費用將對我們的淨投資收益產生有利影響。由於我們的資本結構發生了這些積極變化，而且我們的槓桿率處於三年多來的最低水平，因此，在度過這段動盪時期時，我們擁有充足的資金進行新的投資。

Before I turn it over to Armen, I want to remind you about the meaningful steps we took to more closely align our interests with shareholders. Earlier this year, we amended our incentive fee structure by implementing a total return hurdle, and Oaktree purchased $100 million in OCSL shares at a meaningful premium to the share price, which provided us with additional capital to deploy into our pipeline.

在將發言權交給阿爾緬之前，我想提醒大家，我們已經採取了一些有意義的措施，以使我們的利益與股東的利益更加緊密地結合起來。今年早些時候，我們透過實施總回報障礙修改了我們的激勵費用結構，橡樹資本以高於股價的溢價購買了價值 1 億美元的 OCSL 股票，這為我們提供了額外的資本來部署到我們的管道中。

Also, in July of last year, we reduced our management fee to 1% on all assets. We believe these actions demonstrate our commitment to shareholders and to enhancing the long-term earnings power of the portfolio.

此外，去年 7 月，我們將所有資產的管理費降至 1%。我們相信這些措施體現了我們對股東的承諾以及增強投資組合長期獲利能力的承諾。

I'll now turn over to Armen to more detail on non-accruals and our investment activities.

現在我將向阿曼詳細介紹非應計項目和我們的投資活動。

Thanks, Matt. I'll start with additions to our non-accruals. Two companies were added to non-accrual status during the quarter. The first was Mosaic Companies, a designer, distributor, and retailer of specialty wall and mosaic tile, floor tile, and slabs. Mosaic operates three distinct business segments, and the sponsor had initiated sale processes for all three. Unfortunately, each of these segments are expected to be impacted by tariffs, which affected the sponsor's efforts to sell. Two of those processes were paused during the quarter. The sale of the third segment closed shortly after quarter end, resulting in a meaningful cash paydown of approximately 50% of our total position.

謝謝，馬特。我首先會介紹一下我們的非應計項目。本季有兩家公司被納入非應計狀態。第一家是 Mosaic Companies，專業牆磚、馬賽克磚、地磚和板材的設計商、經銷商和零售商。Mosaic 經營三個不同的業務部門，發起人已啟動所有三個部門的出售流程。不幸的是，預計每個部分都會受到關稅的影響，這影響了贊助商的銷售努力。其中兩個流程在本季暫停。第三部分的出售在季度末不久後完成，導致我們以現金償還了總持倉的約 50%。

Pro forma for the repayment, we took a conservative approach in valuing the remaining assets, leading to a markdown of approximately 76% on the unsold portions. Despite being placed on non-accrual, the material cash recovery reflects progress in our efforts to manage and resolve the position. We are actively working to sell the remaining two business segments.

對於償還的形式，我們採取了保守的方法對剩餘資產進行估值，導致未售出部分的降價幅度約為 76%。儘管被列為非應計項目，但大量現金回收反映了我們管理和解決此問題的努力的進展。我們正在積極努力出售剩餘的兩個業務部門。

The second edition was SIO2, a manufacturer of a hybrid material that combines glass and plastic for medical use in diagnostic tubes, vials, and syringes. Our prior position in the company was restructured in August of 2023. And this quarter, we placed the restructured loan on non-accrual due to the company's continued cash needs. We marked down the loan by about 69% at quarter end. The company recently signed a new contract and is pursuing several other opportunities and license agreements. We remain focused on supporting the company in these strategic initiatives.

第二家是 SIO2，生產玻璃和塑膠混合材料的製造商，該材料用於醫療診斷管、小瓶和注射器。我們在公司之前的職位於 2023 年 8 月進行了重組。本季度，由於公司持續的現金需求，我們將重組貸款設為非應計貸款。我們在季度末將貸款減少了約 69%。該公司最近簽署了一份新合同，並正在尋求其他幾個機會和許可協議。我們將繼續致力於支持公司實施這些策略措施。

Although it's not new to our non-accrual list, Dialyze is another investment where we took a significant markdown. We placed the company's first lien term loan on non-accrual in the December quarter, given the company's ongoing cash needs. We continue to be actively engaged with management and other stakeholders to evaluate the best path forward, but unfortunately, the situation has not materially improved, and this quarter, we marked the loan down by about 76%. While we're clearly not pleased with how SIO2 and Dialyze have trended, these two positions now represent less than 1% of the portfolio at fair value.

儘管 Dialyze 在我們的非應計名單中並不新鮮，但它是我們大幅降價的另一項投資。考慮到公司持續的現金需求，我們在 12 月季度將公司的第一筆留置定期貸款設為非應計貸款。我們繼續積極與管理層和其他利益相關者合作，評估最佳的前進道路，但不幸的是，情況並沒有實質改善，本季度，我們將貸款減少了約 76%。雖然我們顯然對 SIO2 和 Dialyze 的趨勢不滿意，但這兩個部位目前的公允價值佔投資組合的不到 1%。

Turning now to investment activity for the quarter. We committed $407 million of capital across 32 investments, consisting of 24 new borrowers and 8 existing borrowers. This compares to 13 investments totaling $198 million in commitments last quarter. The weighted average yield on our new debt investments was 9.5% versus 9.6% in the prior quarter. Increasing portfolio diversification remains a focus as we took the number of positions to 152 from 136 last quarter.

現在來談談本季的投資活動。我們在 32 項投資中投入了 4.07 億美元的資本，其中包括 24 家新借款人和 8 家現有借款人。相較之下，上個季度共有 13 項投資承諾，總額為 1.98 億美元。我們的新債務投資的加權平均收益率為 9.5%，而上一季為 9.6%。提高投資組合多樣化仍然是我們的重點，上個季度我們將持倉數量從 136 個增加到 152 個。

We continue to emphasize investments at the top of the capital structure and consistent with the first quarter, approximately 84% of the portfolio was invested in senior secured loans, including 81% in first lien loans. To mitigate risk in the current environment, we are prioritizing investments in larger, more diversified businesses that have the financial and operational ability to withstand uncertain times.

我們繼續強調資本結構頂端的投資，與第一季一致，約 84% 的投資組合投資於優先擔保貸款，其中 81% 投資於第一留置權貸款。為了降低當前環境下的風險，我們優先投資規模更大、更多元化、擁有抵禦不確定時期的財務和營運能力的企業。

As of March 31, the median EBITDA of our portfolio companies was approximately $158 million and $16 million increase from the prior quarter. The leverage in our portfolio companies was steady at 5.4 times, well below overall middle market leverage levels. The portfolio's weighted average interest coverage based on current base rates declined slightly to 1.8 times compared to 2.1 times last quarter.

截至 3 月 31 日，我們投資組合公司的 EBITDA 中位數約為 1.58 億美元，比上一季增加 1,600 萬美元。我們投資組合公司的槓桿率穩定在5.4倍，遠低於整體中端市場槓桿率水準。根據目前基準利率計算的投資組合加權平均利息覆蓋率從上一季的 2.1 倍略微下降至 1.8 倍。

Looking at our second quarter originations, I'd like to highlight two noteworthy loans we made to Vantive and Barracuda. The healthcare sector remains a strong focus for us, given its critical need and sustainable outlook. Vantive is a global leader in the development and manufacturing of capital equipment and consumables for both acute and chronic dialysis therapies. As a recognized innovator, Vantive holds the number one position in the non-clinical peritoneal dialysis market, demanding approximately 73% market share. This financing facilitated Carlyle Group's acquisition event structured as a $2.5 billion first lien term loan and a $450 million revolving credit facility.

回顧我們第二季的貸款發放情況，我想強調我們向 Vantive 和 Barracuda 提供的兩筆值得注意的貸款。鑑於醫療保健行業的迫切需求和可持續的前景，它仍然是我們關注的重點。Vantive 是急性和慢性透析治療用資本設備和耗材的開發和製造領域的全球領導者。作為公認的創新者，Vantive 在非臨床腹膜透析市場佔據第一的位置，佔有約 73% 的市場份額。此次融資為凱雷集團的收購提供了便利，其結構為 25 億美元的第一留置權定期貸款和 4.5 億美元的循環信貸額度。

Oaktree provided $425 million of the term loan, which carries a coupon of SOFR plus-5%, along with $77 million of the revolving credit facility. OCSL was allocated $61 million of the total deal. We also like service providers with recurring cash flow models and made an investment in Barracuda, a provider of cloud enabled, email data and network cybersecurity solutions for middle market and small to mid-size businesses.

Oaktree 提供了 4.25 億美元的定期貸款，其票面利率為 SOFR 加 5%，同時還提供 7,700 萬美元的循環信貸額度。OCSL 獲得了該交易總額中的 6,100 萬美元。我們也喜歡具有經常性現金流模型的服務供應商，並對 Barracuda 進行了投資，這是一家為中端市場和中小型企業提供雲端運算、電子郵件資料和網路網路安全解決方案的供應商。

This financing sits alongside the company's syndicated first lien and second lien term loans, and proceeds were used to bolster the company's liquidity position. Oaktree led this transaction and provided $100 million the total $200 million term loan priced at SOFR plus-6.5%. With OCSL receiving $15.5 million. We believe these transactions highlight the strength of Oaktree's deal sourcing platform and our capacity to participate in larger scale opportunity. Advantages we believe set us apart from other market participants.

此次融資與公司的銀團第一留置權和第二留置權定期貸款同時進行，所得款項用於增強公司的流動資金狀況。橡樹資本主導了這筆交易，並提供了總額為 2 億美元的定期貸款中的 1 億美元，貸款利率為 SOFR 加 6.5%。OCSL 獲得 1550 萬美元。我們相信這些交易凸顯了 Oaktree 交易採購平台的實力以及我們參與更大規模機會的能力。我們相信，這些優勢使我們有別於其他市場參與者。

I'll now turn to an overview of exit and repayment activity during the quarter. Investment exits slowed in the second quarter, totaling $279 million primarily driven by fewer sales within our liquid portfolio. As you may recall from our remarks last quarter, we took advantage of strength in the public credit markets late last year and sold certain investments that we believe were fully valued.

現在我將概述本季的退出和償還活動。第二季投資退出放緩，總額為 2.79 億美元，主要原因是我們的流動性投資組合的銷售額減少。您可能還記得我們上個季度的評論，我們利用去年年底公共信貸市場的強勁表現，出售了我們認為已充分估值的某些投資。

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結果。

Thank you, Armen. In our second fiscal quarter ending March 31, 2025, we delivered adjusted net investment income of $38.7 million for $0.45 per share as compared to $44.7 million or $0.54 per share in the prior quarter. The decrease was primarily driven by lower total investment income, partially offset by reduced interest expense and Part 1 incentive fees during the quarter.

謝謝你，阿爾門。在截至 2025 年 3 月 31 日的第二財季，我們的調整後淨投資收益為 3,870 萬美元，每股收益 0.45 美元，而上一季為 4,470 萬美元，每股收益 0.54 美元。下降的主要原因是總投資收入減少，但本季利息支出和第一部分激勵費的減少部分抵消了這一影響。

Adjusted total investment income in the quarter declined $9.9 million compared to the prior quarter, primarily due to a decrease in interest income resulting from a smaller average investment portfolio, the impact of placing new investments on non-accrual status, and declining reference rates.

本季調整後總投資收入與上一季相比下降了 990 萬美元，主要原因是平均投資組合規模較小導致利息收入減少、新投資處於非應計狀態的影響以及參考利率下降。

Net expenses declined $3.8 million from the prior quarter, driven by a $2.4 million decrease in interest expense due to lower outstanding borrowings and lower reference rates on our floating rate liabilities, and a $1.5 million decrease in Part 1 incentive fees, net of fees waived, reflecting the impact of the total return hurdle.

淨支出較上一季減少 380 萬美元，原因是未償還借款減少以及浮動利率負債參考利率降低導致利息支出減少 240 萬美元，扣除免除的費用後第 1 部分激勵費用減少 150 萬美元，反映了總回報障礙的影響。

Now moving to our balance sheet. Our net leverage ratio at quarter end was 0.93 times, down from 1.03 times last quarter. As of March 31, total debt outstanding was $1.47 billion and had a weighted average interest rate of 6.7%, including the effect of our interest rate swap agreements. This is up from last quarter, primarily reflecting the impact of refinancing our 3.5% fixed rate bonds that matured in February with new bonds that mature in 2030.

現在轉到我們的資產負債表。本季末淨槓桿率為0.93倍，低於上季的1.03倍。截至 3 月 31 日，未償還債務總額為 14.7 億美元，加權平均利率為 6.7%，其中包括我們的利率互換協議的影響。這比上一季有所上升，主要反映了我們用 2030 年到期的新債券對 2 月到期的 3.5% 固定利率債券進行再融資的影響。

In connection with issuing the new bonds, we entered into an interest rate swap agreement translating to a coupon of SOFR plus-2.19%. Unsecured debt represented 65% of total debt at quarter end, up from about 59% last quarter. We have plenty of dry powder to fund investment commitments with liquidity of approximately $1.1 billion. This includes $98 million of cash and $1 billion of undrawn capacity on our credit facilities following the recent amendment that Matt described earlier.

在發行新債券時，我們簽訂了一項利率互換協議，轉換為 SOFR 加 2.19% 的票面利率。本季末，無擔保債務佔總債務的 65%，高於上一季的 59% 左右。我們擁有充足的資金來資助投資承諾，流動資金約 11 億美元。其中包括 9,800 萬美元的現金和 10 億美元的未動用信貸額度，這些是馬特之前描述的最近修訂的結果。

Unfunded commitments excluding those related to the joint ventures were $273 million approximately $252 million of which can be drawn immediately, as the remaining $21 million is subject to portfolio companies meeting certain milestones before the funds can be drawn.

不包括與合資企業相關的承諾，未撥付的承諾金額為 2.73 億美元，其中約 2.52 億美元可以立即提取，剩餘的 2,100 萬美元則需要投資組合公司達到某些里程碑後才能提取資金。

Our target leverage range remains unchanged at 0.9 times to 1.25 times. We are currently at the low end of that range due to a combination of successful investment exits, Oaktree's $100 million equity investment in the March quarter, and our prudent approach to deploying capital given market volatility.

我們的目標槓桿範圍維持不變，為0.9倍至1.25倍。由於成功的投資退出、橡樹資本在 3 月季度的 1 億美元股權投資以及我們在市場波動的情況下採取的審慎資本配置方式，我們目前處於該範圍的低端。

Turning now to our joint ventures. Together, the JVs currently hold $440 million of investments, primarily in broadly syndicated loans spread across 54 portfolio companies. During the second fiscal quarter, the JVs again generated attractive annualized ROEs, which were approximately 10.6% in aggregate. Leverage at the JVs was 1.3 times, up slightly from last quarter. In addition, we received a $700,000 dividend from the Kemper JV.

現在談談我們的合資企業。目前，合資公司共持有 4.4 億美元的投資，主要涉及 54 家投資組合公司的廣泛銀團貸款。在第二財季，合資企業再次創造了有吸引力的年化淨資產收益率，總計約為 10.6%。合資企業的槓桿率為 1.3 倍，較上一季略有上升。此外，我們還從 Kemper JV 獲得了 70 萬美元的股息。

With that, I would like to turn the call back to Armen to provide some color on the market environment.

說到這裡，我想把電話轉回給阿爾曼，讓他提供一些關於市場環境的資訊。

Thanks, Chris. Before opening the call up to questions, I'll provide some brief commentary on the market environment. Since the end of the second quarter, we have experienced some of the most volatile public market conditions since the pandemic in March 2020.

謝謝，克里斯。在開始提問之前，我將對市場環境做一些簡短的評論。自第二季末以來，我們經歷了自 2020 年 3 月疫情爆發以來最動盪的公開市場狀況。

There is significant uncertainty surrounding the trade environment, including what new tariffs may arise, potential retaliatory measures from other countries, and how long these policies will remain in place. Despite the wide range of potential outcomes, we believe we can make the following observations with some certainty.

貿易環境存在著很大的不確定性，包括可能出現哪些新的關稅、其他國家可能採取的報復措施以及這些政策將持續多久。儘管可能出現的結果多種多樣，但我們相信可以肯定地做出以下觀察。

Despite an optimistic outlook for a pickup in M&A activity earlier this year, activity has been slow and is likely to remain that way until we have more clarity around the economic outlook. We expect many lenders will be more cautious around capital deployment as they focus on the health of existing portfolio companies.

儘管今年早些時候人們對併購活動回升持樂觀態度，但活動一直進展緩慢，而且在我們對經濟前景有更清晰的認識之前，這種狀況可能會持續下去。我們預計，許多貸款機構將對資本部署更加謹慎，因為他們關注的是現有投資組合公司的健康狀況。

In this environment, companies that were once supported by easy credit and low interest rates are now grappling with tightening liquidity, rising borrowing costs, and disrupted supply chains driven by global trade upheavals. It will be a couple of quarters before tariffs roll through the supply chain and impact portfolio company performance, so it's too early to assess the real impact now.

在這種環境下，曾經受到寬鬆信貸和低利率支撐的企業現在正面臨流動性緊縮、借貸成本上升以及全球貿易動盪導致的供應鏈中斷等問題。關稅要過幾個季度才會波及供應鏈並影響投資組合公司的業績，因此現在評估其實際影響還為時過早。

That said, well in advance of the actual tariff announcements, we were considering their potential impact on existing and prospective investments. This heightened focus factored into our underwriting and risk evaluation, and we are proactively selling investments within our liquid portfolio that we perceive to have more exposure to negative impact from tariffs.

也就是說，在實際關稅公告發布之前，我們就在考慮其對現有和未來投資的潛在影響。這種高度關注已納入我們的核保和風險評估中，我們正在積極出售流動性投資組合中我們認為更容易受到關稅負面影響的投資。

We are also focused on further diversifying our portfolio by selectively investing in companies we believe are well positioned to deliver attractive returns given market uncertainty caused by tariffs, as well as inflation and high interest rates.

我們也致力於進一步實現投資組合多元化，選擇性地投資於我們認為在關稅、通貨膨脹和高利率造成的市場不確定性下能夠帶來可觀回報的公司。

Recently, there's also been an uptick in demand for capital solutions or rescue financing, which could benefit managers like Oaktree that have significant experience and expertise in this area. Historically, in periods of market volatility, our firmwide DNA has enabled us to capitalize on opportunities while others are sidelined, and we have the dry powder to do so again if appropriate opportunities arise.

最近，對資本解決方案或救助融資的需求也有所增加，這可能使橡樹資本等在該領域擁有豐富經驗和專業知識的管理公司受益。從歷史上看，在市場波動時期，我們全公司的 DNA 使我們能夠抓住機會，而其他人則被排除在外，並且如果出現適當的機會，我們有足夠的能力再次這樣做。

In closing, we believe OCSL is well positioned to navigate the current market environment and to deliver attractive risk adjusted returns to our shareholders over the long term. We appreciate your participation on our call today, and now we will take your questions.

最後，我們相信 OCSL 已做好準備，應對當前的市場環境，並在長期內為股東帶來具有吸引力的風 險調整回報。感謝您今天參加我們的電話會議，現在我們將回答您的問題。

Operator, please open the line.

接線員，請接通線路。

(Operator Instructions)

（操作員指示）

Finian O'Shea, Wells Fargo.

富國銀行的菲尼安‧奧謝 (Finian O’Shea)。

Hey everyone, good morning. First question, did you lean in to any liquid markets, structured finance, or syndicated loans in April?

大家好，早安。第一個問題，四月您是否傾向於任何流動市場、結構性融資或銀團貸款？

Hey Finn, it's Armen. We were a little active but not very because we were then and continue to be concerned that the tariff situation is not resolved. And so what happened in April was, yes, it started off with a sell-off in high yield bonds, senior loans to a lesser extent in structured credit. But there's been a rebound in the back half of April, and so we've taken more of a measured approach given that recovery.

嘿，芬恩，我是阿門。我們有點積極，但不是很積極，因為我們當時並且現在仍然擔心關稅問題沒有解決。所以，四月發生的情況是，首先是高收益債券和優先貸款的拋售，其次是結構性信貸的拋售。但四月下半月出現了反彈，因此考慮到復甦，我們採取了更謹慎的態度。

Okay. It was helpful, and just a second higher level question. Armen you mentioned, remaining focused on the larger and diversified businesses I think that's been the language or narrative for a while. Can you hit on like high level how successfully you've been effectuating that, are you out there finding adequate issuers that fit within your box on a credit and structure perspective for direct lending or is this a challenge. And then sort of part B there, the losses experienced are -- what's the sort of overlap? Are they the company -- are they generally smaller EBITDA or do they overlap with that sort of core focus? Thanks.

好的。這很有幫助，而且只是第二個更高層次的問題。您提到了阿門，繼續專注於更大、更多樣化的業務，我認為這已經成為一段時間以來的語言或敘述。您能否從更高層面談談您實現這一目標的成功程度，您是否在尋找適合您的信用和結構角度的直接貸款發行人，或者這是一個挑戰。然後是 B 部分，經歷的損失是——重疊程度如何？他們是公司嗎——他們的 EBITDA 通常較小還是與那種核心重點重疊？謝謝。

Good question. So in terms of size Fin, the market ebbs and flows. So late last year when the markets were pretty strong and wide open from a banking perspective, we saw spreads tightening in broadly syndicated loans, we saw spreads tightening in high yield bonds, and we saw new issuance in senior loans, creation of CLOs, and we saw tightening in direct lending as well.

好問題。因此，就 Fin 的規模而言，市場有起有落。因此，從銀行業的角度來看，去年年底市場表現強勁且開放，我們看到廣泛銀團貸款的利差收緊，高收益債券的利差收緊，我們看到優先貸款的新發行，CLO 的創建，以及直接貸款的收緊。

And in the larger borrower segment, we found that or the borrowers found that they could get better pricing and looser legal terms from the broadly syndicated loan market versus direct lending. So it was, I would say it felt a little bit more challenging or the trend did not feel so great for the ultra large cap, the $100 million, $150 million plus EBITDA category for new deals. Well, it didn't feel so great in the back half or the fourth quarter -- fourth calendar quarter of last year.

在較大的借款人群體中，我們發現，與直接貸款相比，借款人可以從廣泛的銀團貸款市場獲得更好的定價和更寬鬆的法律條款。所以，我想說，對於超大盤股、1 億美元、1.5 億美元及以上 EBITDA 類別的新交易來說，這感覺更具挑戰性，或者趨勢不太好。嗯，去年下半年或第四季的情況不太好。

With some of the volatility we've been seeing in the markets though in the last 1.5 month, we are seeing a pullback in new issuance activity from the banks and so we are seeing a return of some larger borrowers into the direct lending market, post liberation day. And so the pipeline from that perspective is, I would say on the margin better for issuing direct loans to very large borrowers. With that said, M&A deal volume is not as robust as we would like it to be overall as a market.

儘管在過去的一個半月中我們看到市場出現了一些波動，但我們看到銀行的新發行活動有所回落，因此我們看到解放日後一些較大的借款人重返直接貸款市場。因此，從這個角度來看，我認為這種管道更適合向大型借款人發放直接貸款。話雖如此，但整體而言，併購交易量並不像我們所希望的那樣強勁。

Now the reason for that is in the fourth quarter after President Trump was elected, there was, I would say some positive feelings about where the market would go and where rates would go, President Trump generally at that time was considered to be somebody who would lean on lower rates, would lean on deregulation, and those would be good things for deal flow and the transaction of sponsor to sponsor LBOs.

原因在於，在川普總統當選後的第四季度，人們對市場走向和利率走向有一些積極的看法，當時川普總統普遍被認為是傾向於降低利率、放鬆管制的人，這些對於交易流程和發起人對發起人槓桿收購的交易來說都是好事。

Now, so there was a lot of activity at least in terms of discussions late last year and early this year as to, hey, 2025 issuance is going to be very strong and M&A volumes will be strong, but the tariff announcements have thrown a wrench in that and it just seems like private equity sponsors generally are reticent to do deals to pending kind of what's going to happen with these tariffs because it leans on higher rates, it leans on more inflation.

現在，至少在去年年底和今年年初的討論中有很多活動，比如，嘿，2025 年的發行量將會非常強勁，併購量也會很高，但關稅公告卻給這一切帶來了阻礙，而且私募股權發起人似乎一般不願意做交易，等待這些關稅會發生什麼，因為它依賴於更高的利率，依賴於更多的通貨膨脹。

And it -- and all of that is sort of bad for valuation multiples, so there is a -- I think somewhat of a pause happening right now in two respects. One is private equity sponsors doing new deals, and two, corporate borrowers that have some level of tariff related exposure, i.e., part of their supply chain runs through a non-US market, or they part of their sales go to a non-US market.

而且 — — 所有這些都對估值倍數不利，所以 — — 我認為目前在兩個方面出現了某種程度的停頓。一是私募股權發起人進行新交易，二是具有一定程度關稅相關風險的企業借款人，即其部分供應鏈穿過非美國市場，或其部分銷售額流向非美國市場。

We're seeing that there is a pause in building up of inventory, a pause in CapEx spending, and given that backdrop I would expect as -- I would expect to see continued sort of reservations around deal activity for a few months at least, so that's kind of the current condition around deal flow large cap but the deals that are getting done so high quality businesses that are somewhat insulated from tariff impacts that are still being LBO'd, and there have been some announcements in the last few weeks.

我們看到庫存累積暫停，資本支出暫停，鑑於這種背景，我預計至少在未來幾個月內，交易活動仍會繼續受到保留，所以這就是當前大盤股交易流的狀況，但正在完成的交易是高質量的，它們在某種程度上不受關稅影響，仍在進行槓桿收購，過去幾週已經發布了一些公告。

So deals are happening just at less of a rate. Those deals are getting done more frequently in the direct lending market rather than broadly syndicated loan market. So we are engaged in those situations, our pipeline for the quarter so far -- for this quarter that we're in so far is actually pretty good, just given some of that pull back from the bank so we feel good about that condition.

因此交易發生的頻率較低。這些交易在直接貸款市場比在廣泛的銀團貸款市場更頻繁地完成。因此，我們正在應對這些情況，到目前為止，我們本季的通路情況實際上相當不錯，只是考慮到銀行的一些撤資，所以我們對這種情況感到滿意。

And to answer your second question about the markdowns, no, look, the markdowns are not in large cap sponsor lending. The markdowns unfortunately it's all -- it's been the same names for a few quarters now for a couple of years now that I kind of weighed on performance and I don't -- there isn't anything thematic about them, but other than late year, mid last year with Pluralsight which was a very large LBO that had some issues, which I think we've discussed in the past and has been pretty well known in the market.

回答您關於降價的第二個問題，不，您看，降價並不存在於大型股發起人貸款中。不幸的是，降價都是——幾年來，幾個季度以來，它們的名字一直是一樣的，我有點重視業績，但我沒有——它們沒有任何主題性，但除了去年年末和年中 Pluralsight 的情況外，Pluralsight 是一家非常大的槓桿收購公司，存在一些問題，我想我們過去已經討論過這個問題，而且這個問題在市場上已經相當有名了。

Other than that one situation, the rest of them are sort of idiosyncratic situations where just businesses have not executed the way they should have. In the case of SIO2, a business that was doing incredibly well during COVID, took a lot of that profitability and spent it on new R&D that didn't pan out unfortunately. And so it's -- that's not really a large cap issue or a big versus small business issue. It's a deal where the execution around that technology just did not meet expectations.

除了這種情況之外，其餘的情況都是一些特殊情況，只是企業沒有按照應有的方式執行。以 SIO2 為例，這家在 COVID 期間表現非常好的企業將大量獲利能力投入到新的研發中，但不幸的是，並沒有成功。所以，這其實不是一個大盤股問題，也不是大企業與小企業之間的問題。這筆交易中，圍繞該技術的執行並未達到預期。

Okay. Thank you.

好的。謝謝。

Thank you.

謝謝。

Melissa Wedel, JP Morgan.

摩根大通的梅麗莎·韋德爾。

Good morning. Thanks for taking my questions. Really trying to discern sort of run rate NII, given the markdowns on the portfolio, and the additional changes in non-accruals, it seems like with some stabilizing base rates this could be sort of what we could expect in that -- given no changes in base rates, this could be a run rate level NII. Is that fair to say or are you seeing other things happening in the portfolio that could impact that?

早安.感謝您回答我的問題。真正試圖辨別運行率 NII，考慮到投資組合的降價以及非應計項目的額外變化，似乎在一些穩定的基本利率的情況下，這可能是我們可以預期的 - 假設基本利率沒有變化，這可能是運行率水平的 NII。這樣說公平嗎？或者您看到投資組合中發生的其他事情可能會對此產生影響？

Hey Melissa, it's Chris. Thanks for the question. I'll get it started and Armen and Matt want to chime in, please feel free. I think a couple of things we're focused on, we mentioned in our prepared remarks that we finished the quarter at 0.93 times net leverage, so definitely kind of the low end of our range and where we been operating historically.

嘿，梅麗莎，我是克里斯。謝謝你的提問。我會開始的，阿曼和馬特也想加入，請隨意。我認為我們關注的幾件事是，我們在準備好的評論中提到，本季結束時我們的淨槓桿率為 0.93 倍，這絕對是我們範圍的低端，也是我們歷史上的營運水平。

Our average portfolio throughout the quarter was a little bit lower versus prior quarters. So we're going to -- as Armen I mentioned going to be patient around deployment, but over time we are mindful of the fact we're lowering our leverage range than where we've been operating.

我們整個季度的平均投資組合與前幾季相比略低。因此，正如阿曼所說，我們將在部署方面保持耐心，但隨著時間的推移，我們注意到我們的槓桿範圍正在降低，低於我們一直以來的營運水準。

And then I think, the other focus and I think Matt mentioned a couple of his comments just around, working through some of these situations on the non-accruals, turning those into cash producing assets is definitely a continued focus of ours.

然後我認為，另一個重點，我認為馬特剛才提到了他的幾條評論，解決一些非應計情況，將其轉化為現金生產資產肯定是我們持續關注的重點。

And I think, Melissa it’s Matt, the other area continue to focus on is the JV's, and putting more assets in there running leverage, a little bit higher there. They invest mostly in BSL, so those are -- it's relatively more easy to deploy there than in some of the private assets that the sales cycle is a little bit longer. So that's just the other point I'd make.

我認為，梅麗莎和馬特，另一個繼續關注的領域是合資企業，並在那裡投入更多資產，提高槓桿率，稍微高一點。他們主要投資於 BSL，因此，與銷售週期稍長的一些私人資產相比，在那裡部署相對容易。這就是我要說的另一點。

Sure. And I mean to that point on leverage and then deploying within the joint ventures. I mean, obviously this quarter, it seems very different from even the March quarter when we look at sort of the repayment levels that you've seen in the portfolio and exits repayments and exits over the last three quarters they've been pretty sizable. Should we be expecting any slowing of repayment activity during this period of volatility, or would you expect that to remain pretty elevated?

當然。我的意思是利用槓桿作用，然後在合資企業中部署。我的意思是，顯然這個季度與 3 月季度有很大不同，當我們查看投資組合中的還款水平以及過去三個季度的退出還款和退出情況時，它們的規模相當大。在這段波動時期，我們是否應該預期還款活動會放緩，或者您是否預期還款活動會保持在相當高的水平？

Melissa, this is Armen, I could take a crack at that. So a couple things, in terms of liquid credit in the back half of last year, especially the fourth quarter as the markets were pretty tight, we actually -- we're just generally a net seller of liquid credit and so we actually de-levered the JVs as a result of that.

梅麗莎，這是阿爾曼，我可以試試看。因此，就去年下半年的流動信貸而言，特別是第四季度，由於市場相當緊張，我們實際上 - 我們通常只是流動信貸的淨賣家，因此我們實際上降低了合資企業的槓桿率。

I think given the volatility in the last four to six weeks in the public markets and our anticipation of further volatility in those markets given what I would expect would be a challenging tariff backdrop for a while, I would expect that we will find some opportunities to deploy into the joint ventures and increase their leverage again.

我認為，鑑於過去四到六週公開市場的波動，以及我們預期這些市場將進一步波動，考慮到我預計一段時間內關稅背景將充滿挑戰，我預計我們會找到一些機會部署到合資企業並再次提高他們的槓桿率。

We're looking for good deals that are or good companies that are trading discounted. And we don't think it's there yet. They traded off 2 points, 3 points maybe 3.5 points in late March and into April, and they've recovered, maybe half of that point move, and so -- and if you look at high yield bonds, the spreads had widened to 435, 440-ish during that time frame. They're now back to sort of 375.

我們正在尋找優惠的交易或以折扣價交易的優質公司。但我們認為它還沒有到達那裡。在 3 月底和 4 月份，它們的利差為 2 個點、3 個點甚至 3.5 個點，現在它們已經恢復，可能恢復了一半的點數，所以 — — 如果你看一下高收益債券，你會發現在這段時間內，利差已經擴大到了 435、440 左右。現在他們又回到了 375 左右。

They are pretty volatile though, quite sort of up and down, but we think that as performance starts to show up in the second calendar quarter this year and into the third, there's probably going to be volatility in the public credit and equity markets that we think we could take advantage of for the JVs.

儘管它們的波動性相當大，相當有起伏，但我們認為，隨著今年第二季和第三季業績開始顯現，公共信貸和股票市場可能會出現波動，我們認為我們可以利用這一點為合資企業創造優勢。

In the case of private credit, we actually have had some exits, since the end of the quarter, and so, I think we -- those are more idiosyncratic, not really reflective of necessarily a tightening credit story. It was just situations that resolved. So I think our repayments for the quarter are not going to be immaterial. I think they will be up for the quarter end of June. I think they'll still be significant enough, but again -- but yeah, I think your instinct is correct that if the markets are volatile that generally speaking repayments, refinancing should slow down and I would expect to see that over the coming quarters as well.

就私人信貸而言，自本季末以來，我們實際上已經有一些退出，所以，我認為，這些都是比較特殊的，並不一定反映信貸緊縮的情況。這只是情況得到解決而已。所以我認為我們本季的還款金額不會不重要。我認為他們會在六月底之前完成本季的工作。我認為它們仍然足夠重要，但是再說一次 - 但是的，我認為你的直覺是正確的，如果市場波動，那麼一般來說還款、再融資應該會放緩，我預計在未來幾個季度也會看到這種情況。

Thanks very much.

非常感謝。

(Operator Instructions)

（操作員指示）

Paul Johnson, KBW.

保羅·約翰遜，KBW。

Thank you. Thanks for taking my questions. Just on the kind of run rate question of income, just looking at the portfolio yield this quarter I think it was down 50 basis points or so. But if I take a quick average of just kind of the debt portfolio yield quarter over quarter, it looks like it's down a little over 100 basis points. So I'm just curious, like is there any kind of one time stuff that's flowing through there, that would -- is this yield, I guess that we have today reflective of kind of what you think the portfolio should generate going forward?

謝謝。感謝您回答我的問題。僅就營收的運行率問題而言，僅看本季的投資組合收益率，我認為它下降了 50 個基點左右。但如果我對債務組合收益率逐季進行快速平均，看起來它下降了 100 多個基點。所以我只是很好奇，例如，是否有任何一次性的東西流經那裡，那會——我猜我們今天的收益率是否反映了您認為投資組合未來應該產生的收益？

Yeah. Hey, it's Chris. Appreciate the question. Yeah, I think a couple of factors. I think looking at sort of the quarter on quarter decline in interest income, part of that is just due to reference rate declines in the December quarter rate sets for about half the book were based on 9/30 base rates, so those reset at the end of December in light of the rate cuts that happen in the fourth calendar quarter, that plays through in the March quarter.

是的。嘿，我是克里斯。感謝你的提問。是的，我認為有幾個因素。我認為，從利息收入的季度環比下降來看，部分原因是由於 12 月季度的參考利率下降，大約一半的利率是基於 9/30 基準利率，因此根據第四季度的降息，這些利率在 12 月底進行了重置，並將在 3 月季度繼續發揮作用。

That's part of it. And your -- as far as the quarter on quarter decline in yield seeing from the 10.7% we reported last quarter to the 10.2% this quarter, majority of that of about 30 bps worth was due to the impact of the new non accruals which we've -- just and a little bit of just, I'll call it lingering timing with respect to reference rate resets and also some spread compression quarter on quarter. So I do think that, where we're at now is the decent run rate viewed on the book.

這是其中的一部分。至於收益率的環比下降，從我們上一季度報告的 10.7% 下降到本季度的 10.2%，其中約 30 個基點的大部分下降是由於新的非應計項目的影響——只是一點點，我稱之為參考利率重置的滯後時間，以及環比利差壓縮。所以我確實認為，我們現在所處的狀況是該書所觀察到的不錯的運行率。

Okay, thank you for that. And then, you partly answered my question here, but on the JV the 10.6% ROE, is that a net ROE as opposed to like an operating ROE on the JV?

好的，謝謝你。然後，您在這裡部分回答了我的問題，但是對於合資企業來說，10.6% 的 ROE 是淨 ROE 還是合資企業的營運 ROE？

So that's looking at the NII of the JV. And I should say the NII plus the coupon interest on the subordinated note.

這就是對合資企業的 NII 的觀察。我應該說的是 NII 加上次級票據的票息。

Okay, because that's pretty close to what you're generating on the balance sheet, so it sounds like you may find some opportunities to increase leverage there and put some investments into the JV. So with leverage I guess what do you think you could potentially get the JV to in terms of an ROE over time?

好的，因為這與您在資產負債表上產生的收入非常接近，所以聽起來您可能會找到一些機會來增加槓桿並對合資企業進行一些投資。那麼，我猜您認為利用槓桿，隨著時間的推移，合資企業的 ROE 有可能達到什麼水平？

That's -- I think it'd depend on the opportunity set. I mean, certainly getting back up into the call it the 11%, 12% context I think is achievable. But will ultimately depend on the opportunities that we're seeing there.

那——我認為這取決於機會集。我的意思是，回到 11%、12% 的範圍，我認為這是可以實現的。但最終將取決於我們在那裡看到的機會。

Appreciate it. That's all for me.

非常感謝。對我來說就這些了。

Thank you. This concludes the question and answer session. I would like to turn the conference back over to Clark Koury for any closing remarks.

謝謝。問答環節到此結束。我想將會議交還給克拉克·庫裡 (Clark Koury) 做最後發言。

Thank you, operator and thank you all for joining us on today's call. A replay of the earnings call will be available in approximately one hour, and you can access that on the Investor section of OCSL's website. Please feel free to reach out to me, and team with any questions you may have. Thanks again for your participation and support.

謝謝接線員，也謝謝大家參加今天的電話會議。收益電話會議的重播將在大約一小時後提供，您可以在 OCSL 網站的投資者部分訪問。如果您有任何問題，請隨時與我和團隊聯繫。再次感謝您的參與與支持。

The conference has now concluded. Thank you for attending today's presentation. You may not disconnect.

會議現已結束。感謝您參加今天的演講。您不能斷開連線。