Oaktree Specialty Lending sees rise in annual investment income despite flat Q4
Oaktree Specialty Lending Corporation saw its total investment income rise to $379.3m (£304.13m) in its 2023 financial year, despite a flat fourth quarter.
The specialty finance company reported total investment income of $101.9m in the fourth quarter of the year ended 30 September 2023, flat on the third quarter.
“The increase for the full year was primarily driven by the impact of higher base rates on the company’s floating rate debt portfolio and the growth of the investment portfolio from the assets acquired in the merger with Oaktree Strategic Income II,” the company said.
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Net asset value per share was $19.63 as of 30 September, down from $20.38 on the same date last year but up slightly from $19.58 on 30 June 2023.
“The [year-on-year] decline primarily reflected credit spread widening on debt investments that drove unrealized losses on certain investments and the impact of the December 2022 special distribution,” the firm said.
The board also declared quarterly and special distributions of $0.55 per share and $0.07 per share, respectively, which will be paid by the end of the year.
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“We delivered solid fourth quarter results, culminating a fiscal year defined by strong earnings growth and attractive new deployment activity,” said Armen Panossian, chief executive and chief investment officer.
“We also strengthened our capital structure in August through the issuance of $300m of notes due 2029, creating additional flexibility and increased investment capacity that positions [the firm] to prudently pursue new investment opportunities and favorable returns for our shareholders.”
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