THIRD QUARTER 2021

EARNINGS PRESENTATION

AUGUST 5, 2021

NASDAQ: OCSL

Forward Looking Statements

Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward- looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, "Oaktree") to reposition our portfolio and to implement Oaktree's future plans with respect to our business; the ability of Oaktree and its affiliates to attract and retain highly talented professionals; our business prospects and the prospects of our portfolio companies; the impact of the investments that we expect to make; the ability of our portfolio companies to achieve their objectives; our expected financings and investments and additional leverage we may seek to incur in the future; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our portfolio companies; and the cost or potential outcome of any litigation to which we may be a party. In addition, words such as "anticipate," "believe," "expect," "seek," "plan," "should," "estimate," "project" and "intend" indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this presentation involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in "Risk Factors" and elsewhere in our annual report on Form 10-K for the fiscal year ended September 30, 2020 and our quarterly report on Form 10-Q for the quarter ended June 30, 2021. Other factors that could cause actual results to differ materially include: changes or potential disruptions in our operations, the economy, financial markets or political environment; risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters or the COVID-19 pandemic; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business development companies or regulated investment companies; general considerations associated with the COVID-19 pandemic; the ability to realize the anticipated benefits of the merger of Oaktree Strategic Income Corporation ("OCSI") with and into us (the "Merger"); and other considerations that may be disclosed from time to time in our publicly disseminated documents and filings.

We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

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Highlights for the Quarter Ended June 30, 2021

NET ASSET VALUE

• $7.22, up 2% from $7.09 as of March 31, 2021 and up 9% from $6.61 as of December 31, 2019 (prior to the onset of the pandemic)

PER SHARE

• Quarterly increase primarily due to realized and unrealized gains on certain debt and equity investments

• $0.19 per share, up as compared with $0.14 per share for the quarter ended March 31, 2021 and $0.12 per share for the quarter ended June

ADJUSTED NET

30, 2020, primarily driven by higher OID acceleration and prepayment fees resulting from exits of investments

INVESTMENT INCOME1

• GAAP net investment income was $0.20 per share, up as compared with $0.12 per share for the quarters ended March 31, 2021 and June

30, 2020

• Declared a cash distribution of $0.145 per share, an increase of 12% from the prior quarter and 38% from one year ago

DIVIDEND

• Fifth consecutive quarter with a distribution increase

• Distribution will be payable on September 30, 2021 to stockholders of record as of September 15, 2021

INVESTMENT

•

$178 million of new investment commitments; 9.2% weighted average yield on new debt investments

•

$165 million of new investment fundings and received $171 million of proceeds from prepayments, exits, other paydowns and sales, which

ACTIVITY

had a weighted average yield of 6.1%

INVESTMENT

•

$2.3 billion at fair value diversified across 135 portfolio companies

•

8.4% weighted average yield on debt investments, up from 8.3% as of March 31, 2021

PORTFOLIO

• No investments on non-accrual status

• 0.86x total debt to equity ratio; 0.79x net debt to equity ratio

CAPITAL STRUCTURE

• $85 million of cash and $636 million of undrawn capacity on credit facilities

& LIQUIDITY

• Issued $350 million of 2.700% notes due 2027; entered into interest rate swap agreement to pay LIBOR plus 1.658%

• Amended syndicated revolving credit facility; increased size to $950 million and extended maturity by two years to 2026

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1 See page 20 for a description of this non-GAAP measure.

Portfolio Summary as of June 30, 2021

PORTFOLIO CHARACTERISTICS

PORTFOLIO COMPOSITION

(At fair value)

(As % of total portfolio at fair value; $ in millions)

$2.3bn

135

TOTAL INVESTMENTS

PORTFOLIO COMPANIES

8.4%

$102mm

WEIGHTED AVERAGE YIELD ON

MEDIAN DEBT PORTFOLIO

DEBT INVESTMENTS

COMPANY EBITDA1

87%

0

SENIOR SECURED

NON-ACCRUALS

DEBT INVESTMENTS

4%

First Lien - $1,580

1%

8%

Second Lien - $447

19%

Unsecured - $32

68%

Equity - $92

Joint Ventures - $188

TOP TEN SUB-INDUSTRIES2,3

(As % of total portfolio at fair value)

Application Software

14.3%

Data Processing & Outsourced Services

7.1%

Pharmaceuticals

5.3%

Biotechnology

5.0%

Personal Products

4.6%

Industrial Machinery

3.5%

Health Care Services

3.3%

Internet & Direct Marketing Retail

2.9%

Construction & Engineering

2.9%

Specialized Finance

2.8%

Note: Numbers may not sum due to rounding.

  1. Excludes negative EBITDA borrowers, investments in aviation subsidiaries, investments in structured products and recurring revenue software investments.
  2. Based on GICS sub-industry classification.
  3. Excludes multi-sector holdings, which is primarily composed of investments in Senior Loan Fund JV I LLC (the "Kemper JV") and OCSI Glick JV (the "Glick JV"), joint ventures that invest primarily in

senior secured loans of middle market companies.

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Portfolio Diversity

DIVERSITY BY INVESTMENT SIZE

(As % of total portfolio at fair value)

Joint Ventures

8%

Top 10 Investments

20%

Next 15

Investments

21%

Remaining 108

Investments

50%

PORTFOLIO BY INDUSTRY1

(As % of total portfolio at fair value)

Industry

% of Portfolio

Software

14.6%

IT Services

9.5

Pharmaceuticals

5.3

Biotechnology

5.0

Health Care Providers & Services

4.8

Personal Products

4.6

Chemicals

3.9

Machinery

3.5

Oil, Gas & Consumable Fuels

3.4

Diversified Financial Services

3.4

Real Estate Management & Development

3.1

Internet & Direct Marketing Retail

2.9

Remaining 27 Industries

27.9

Joint Ventures

8.1

OCSL's portfolio is diverse across borrowers and industries

As of June 30, 2021

Note: Numbers may not sum due to rounding.

1 Based on GICS industry classification.

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Oaktree Specialty Lending Corporation published this content on 05 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2021 10:05:05 UTC.