2024-07-20 11:25:13 ET
Summary
- OCSL’s portfolio includes 81% first-lien loans, providing high-priority protection and enhancing income stability and asset valuation.
- Non-accrual investments decreased from $120.7 million to $69.1 million in Q2 2024, indicating enhanced credit quality and portfolio stability.
- With $1 billion in available liquidity and a net debt-to-equity ratio of 1.02x, OCSL is well-positioned for new investments and financial obligations.
- OCSL's $408.91 million investment in application software shows a 1.15% fair value loss, mitigated by first lien loans ensuring priority claims on intangible assets.
Investment Thesis
Since my last coverage three years ago, Oaktree Specialty Lending Corporation ( OCSL ) has seen its stock price decline by nearly 10%. It has underperformed the broader market, returning 23%, below the broader market's 29% return. Despite this underperformance, OCSL presents an attractive entry point, trading at a 0.95x Price/NAV multiple....
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For further details see:
Oaktree Specialty Lending: Built For Stability And Success