What changed in this filing

/stocks — the workspaceLOADING

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2020-11-19 compared with 2019-11-20 · 1540 added, 1750 removed, 1500 unchanged (69% of the section changed)

13 unchanged sentences

As of September 30, 2020, 88.3% of our debt investment portfolio (at fair value) and 88.8% of our debt investment portfolio (at cost) bore interest at floating rates.

The composition of our floating rate debt investments by cash interest rate floor (excluding PIK) as of September 30, 2019 and September 30, 2018 was as follows:

September 30, 2019

September 30, 2018

($ in thousands)

% of Floating

Rate Portfolio

% of Floating

Rate Portfolio

Based on our Consolidated Statement of Assets and Liabilities as of September 30, 2019 , the following table shows the approximate annualized increase (decrease) in components of net assets resulting from operations of hypothetical base rate changes in interest rates, assuming no changes in our investment and capital structure.

The composition of our floating rate debt investments by interest rate floor as of September 30, 2020 and September 30, 2019 was as follows:

September 30, 2020 September 30, 2019

($ in thousands) Fair Value % of Floating Rate Portfolio Fair Value % of Floating Rate Portfolio

0% $ 553,829 42.2 % $ 489,464 41.6 %

>0% and <1% 39,789 3.0 % — — %

1% 672,529 51.3 % 685,995 58.4 %

>1% 45,362 3.5 % — — %

Total Floating Rate Investments $ 1,311,509 100.0 % $ 1,175,459 100.0 %

Based on our Consolidated Statement of Assets and Liabilities as of September 30, 2020, the following table shows the approximate annualized net increase (decrease) in net assets resulting from operations of hypothetical base rate changes in interest rates, assuming no changes in our investment and capital structure.

However, there can be no assurances our portfolio companies will be able to meet their contractual obligations at any or all levels on increases in interest rates.

($ in thousands)

Basis point increase

Interest Income

Interest Expense

Basis point decrease

Interest Income

Interest Expense

Net increase (decrease)

(1) The effect of a greater than 200 basis point decrease is limited by interest rate floors on certain investments.

Basis point increase Increase in Interest Income (Increase) in Interest Expense Net increase (decrease) in net assets resulting from operations

250 $ 27,608 $ (10,371) $ 17,237

200 20,845 (8,297) 12,548

150 14,082 (6,222) 7,860

100 7,417 (4,148) 3,269

50 2,896 (2,074) 822

The net effect of any decrease in interest rates is limited and would not be of significance due to interest rate floors on investments and borrowings outstanding.

We regularly measure exposure to interest rate risk.

2 unchanged sentences

The following table shows a comparison of the interest rate base for our interest-bearing cash and outstanding investments, at principal, and our outstanding borrowings as of September 30, 2020 and September 30, 2019:

September 30, 2019

September 30, 2018

($ in thousands)

Interest Bearing

September 30, 2020 September 30, 2019

($ in thousands) Interest Bearing

Investments Borrowings Interest Bearing

Investments Borrowings

Money market rate $ 35,248 $ — $ 9,611 $ —

Prime rate 305 — 48,036 14,000

30 day 717,576 414,825 686,880 300,825

60 day 6,861 — 9,000 —

90 day 362,141 — 402,603 —

180 day 201,699 — 20,967 —

360 day 23,351 — — —

30 day 29,126 — 19,078 —

180 day 1,689 — — —

30 day 23,270 — 22,181 —

180 day 14,612 — — —

Fixed rate 171,976 300,000 185,809 161,250

Total $ 1,587,854 $ 714,825 $ 1,404,165 $ 476,075

Consolidated Financial Statements.

Index to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firms

Reports of Independent Registered Public Accounting Firm

Consolidated Statements of Assets and Liabilities as of September 30, 2020 and 2019

8 unchanged sentences

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of assets and liabilities of Oaktree Specialty Lending Corporation (the Company), including the consolidated schedules of investments, as of September 30, 2019 and 2018, the related consolidated statements of operations, changes in net assets, and cash flows for each of the two years in the period ended September 30, 2019, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at September 30, 2019 and 2018, and the results of its operations, changes in its net assets, and its cash flows for each of the two years in the period ended September 30, 2019, in conformity with U.S.

We have audited the accompanying consolidated statements of assets and liabilities of Oaktree Specialty Lending Corporation (the Company), including the consolidated schedules of investments, as of September 30, 2020 and 2019, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended September 30, 2020, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at September 30, 2020 and 2019, and the results of its operations, changes in its net assets, and its cash flows for each of the three years in the period ended September 30, 2020, in conformity with U.S.

generally accepted accounting principles.

21 unchanged sentences

In our opinion, Oaktree Specialty Lending Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of September 30, 2020, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of assets and liabilities of the Company, including the consolidated schedules of investments, as of September 30, 2019 and 2018, the related consolidated statements of operations, changes in net assets and cash flows for each of the two years in the period ended September 30, 2019, and the related notes and our report dated November 19, 2019 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of assets and liabilities of the Company, including the consolidated schedules of investments, as of September 30, 2020 and 2019, the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended September 30, 2020, and the related notes and our report dated November 18, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

17 unchanged sentences

November 18, 2020

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Oaktree Specialty Lending Corporation

In our opinion, the consolidated statements of operations, changes in net assets and cash flows for the year ended September 30, 2017 present fairly, in all material respects, the results of operations and cash flows of Oaktree Specialty Lending Corporation (formerly known as Fifth Street Finance Corp.) and its subsidiaries for the year ended September 30, 2017, in conformity with accounting principles generally accepted in the United States of America.

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States).

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

New York, New York

November 29, 2017, except for the senior securities table included in Note 12 to the aforementioned consolidated financial statements for each of the years ended September 30, 2017, 2016, 2015, 2014, 2013, 2012 and 2011, as to which the date is January 16, 2018

Oaktree Specialty Lending Corporation

1 unchanged sentence

(in thousands, except per share amounts)

September 30, 2019

September 30, 2018

September 30, 2020 September 30, 2019

Investments at fair value:

1 unchanged sentence

cost September 30, 2019:

$224,255) $ 201,385 $ 209,178

Affiliate investments (cost September 30, 2020:

cost September 30, 2019:

$8,449) 6,509 9,170

Non-control/Non-affiliate investments (cost September 30, 2020:

cost September 30, 2019:

$1,280,310) 1,365,957 1,219,694

Total investments at fair value (cost September 30, 2020:

cost September 30, 2019:

$1,513,014) 1,573,851 1,438,042

Cash and cash equivalents 39,096 15,406

Restricted cash

Interest, dividends and fees receivable 6,935 11,167

2 unchanged sentences

Deferred financing costs 5,947 6,396

Deferred offering costs 67 —

Deferred tax asset, net 847 —

Derivative assets at fair value 223 490

Other assets 1,898 2,335

Total assets $ 1,640,712 $ 1,481,038

LIABILITIES AND NET ASSETS

3 unchanged sentences

Interest payable 1,626 2,296

Payable to syndication partners

Payables from unsettled transactions 478 59,596

2 unchanged sentences

Unsecured notes payable (net of $3,272 and $2,708 of unamortized financing costs as of September 30, 2020 and September 30, 2019, respectively) 294,490 158,542

Secured borrowings at fair value (proceeds September 30, 2019:

proceeds September 30, 2018:

Total liabilities 725,833 550,408

10 unchanged sentences

(in thousands, except per share amounts)

September 30, 2019

September 30, 2018

September 30, 2020 Year ended

September 30, 2019 Year ended

September 30, 2018

27 unchanged sentences

General and administrative expenses 2,494 2,530 3,120

Loss on legal settlements

Total expenses 65,941 87,783 80,018

Insurance recoveries

Reversal of fees waived / (fees waived) 5,200 (7,990) (1,342)

Net expenses 71,141 79,793 78,676

Net investment income 71,992 67,909 60,046

10 unchanged sentences

Non-control/Non-affiliate investments (4,615) 15,300 6,042

Extinguishment of unsecured notes payable (2,541) — (120)

Secured borrowings — 2,625 —

1 unchanged sentence

Net realized gains (losses) (13,924) 20,805 (115,267)

Redemption premium on unsecured notes payable

Provision for income tax (expense) benefit 1,770 (1,011) (622)

9 unchanged sentences

September 30,

2020 Year ended

September 30,

2019 Year ended

September 30,

2 unchanged sentences

Net realized gains (losses) (13,924) 20,805 (115,267)

Redemption premium on unsecured notes payable

Provision for income taxes

Provision for income tax (expense) benefit 1,770 (1,011) (622)

Net increase (decrease) in net assets resulting from operations 39,224 126,160 46,762

Stockholder transactions:

Contributions from stockholders

Distributions to stockholders (54,975) (53,565) (38,699)

3 unchanged sentences

Issuance of common stock under dividend reinvestment plan 1,878 1,344 1,411

Repurchases of common stock under stock repurchase program

Repurchases of common stock under dividend reinvestment program

Repurchases of common stock under dividend reinvestment plan (1,878) (1,344) (1,411)

Net increase (decrease) in net assets from capital share transactions — — —

9 unchanged sentences

September 30,

2020 Year ended

September 30,

2019 Year ended

September 30,

1 unchanged sentence

Net increase (decrease) in net assets resulting from operations $ 39,224 $ 126,160 $ 46,762

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

Net change in unrealized (appreciation) depreciation

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

Net unrealized (appreciation) depreciation 20,614 (38,457) (102,605)

Net realized (gains) losses 13,924 (20,805) 115,147

1 unchanged sentence

PIK interest income (7,863) (5,497) (4,380)

Non-cash fee income

Accretion of original issue discount on investments (12,305) (17,982) (7,331)

8 unchanged sentences

(Increase) decrease in receivables from unsettled transactions (4,537) 22,174 (26,760)

(Increase) decrease in insurance recoveries receivable

(Increase) decrease in other assets 437 673 (2,494)

5 unchanged sentences

Increase (decrease) in director fees payable — — (184)

Increase (decrease) in legal settlements payable

Increase (decrease) in amounts payable to syndication partners — (109) 108

Net cash provided by operating activities

Net cash provided by (used in) operating activities (152,875) 215,824 53,509

Financing activities:

Contributions received in cash

Distributions paid in cash (53,097) (52,221) (54,973)

Repayments of borrowings under SBA debentures

Borrowings under credit facilities 286,000 298,825 434,000

1 unchanged sentence

Repayments of unsecured notes (161,250) (228,825) —

Issuance of unsecured notes 297,459 — —

Repurchase of unsecured notes — — (21,188)

Repayments of secured borrowings — (2,659) (1,191)

Repurchases of common stock under stock repurchase program

Repurchases of common stock under dividend reinvestment plan (1,878) (1,344) (1,411)

Deferred financing costs paid (4,835) (2,883) (6,175)

Net cash used in financing activities

Deferred offering costs paid (67) — —

Net cash provided by (used in) financing activities 176,332 (214,107) (99,933)

Effect of exchange rate changes on foreign currency 233 200 —

Net increase (decrease) in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash, beginning of period

Cash and cash equivalents and restricted cash, end of period

Net increase (decrease) in cash and cash equivalents 23,690 1,917 (46,424)

Cash and cash equivalents, beginning of period 15,406 13,489 59,913

Cash and cash equivalents, end of period $ 39,096 $ 15,406 $ 13,489

Supplemental information:

Cash paid for interest $ 24,470 $ 31,025 $ 31,821

Non-cash operating activities:

Purchases of investments from restructurings

Proceeds from investment restructurings

Non-cash financing activities:

1 unchanged sentence

Extinguishment of secured borrowings — (7,163) —

Oaktree Specialty Lending Corporation

Consolidated Statements of Cash Flows

(in thousands)

Reconciliation to the Consolidated Statements of Assets and Liabilities

September 30, 2019

September 30, 2018

September 30, 2017

Reconciliation to the Consolidated Statements of Assets and Liabilities September 30, 2020 September 30, 2019 September 30, 2018

Cash and cash equivalents $ 39,096 $ 15,406 $ 13,380

6 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Control Investments

C5 Technology Holdings, LLC

Data processing & outsourced services

C5 Technology Holdings, LLC Data Processing & Outsourced Services

829 Common Units $ — $ — (20)

34,984,460.37 Preferred Units 34,984 27,638 (20)

First Star Speir Aviation Limited

34,984 27,638

Dominion Diagnostics, LLC Health Care Services

First Lien Term Loan, LIBOR+5.00% cash due 2/28/2024 6.00 % $ 27,660 27,660 27,660 (6)(20)

First Lien Revolver, LIBOR+5.00% cash due 2/28/2024 6.00 % 5,260 5,260 5,260 (6)(19)(20)

30,030.8 Common Units in DD Healthcare Services Holdings, LLC 18,626 7,667 (20)

51,546 40,587

First Star Speir Aviation Limited Airlines (10)

First Lien Term Loan, 9.00% cash due 12/15/2020 11,510 2,035 11,510 (11)(20)

100% equity interest 8,500 1,622 (11)(12)(20)

10,535 13,132

New IPT, Inc.

3 unchanged sentences

50.087 Class A Common Units in New IPT Holdings, LLC — — (20)

Senior Loan Fund JV I, LLC

Multi-sector holdings

Senior Loan Fund JV I, LLC Multi-Sector Holdings (14)

Subordinated Debt, LIBOR+7.00% cash due 12/29/2028 7.17 % 96,250 96,250 96,250 (6)(11)(20)

87.5% LLC equity interest 49,322 21,190 (11)(16)(19)

Thruline Marketing, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022

First Lien Revolver, LIBOR+7.75% cash due 4/3/2022

9,073 Class A Units in FS AVI Holdco, LLC

145,572 117,440

Total Control Investments (22.0% of net assets) $ 245,950 $ 201,385

Affiliate Investments (17)

Assembled Brands Capital LLC

Specialized finance

First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 10/17/2023

Assembled Brands Capital LLC Specialized Finance

First Lien Revolver, LIBOR+6.00% cash due 10/17/2023 7.00 % $ 4,688 $ 4,688 $ 4,194 (6)(19)(20)

1,609,201 Class A Units 764 483 (20)

2 unchanged sentences

Caregiver Services, Inc.

Healthcare services

Health Care Services

1,080,399 shares of Series A Preferred Stock, 10% 1,080 741 (20)

1 unchanged sentence

Non-Control/Non-Affiliate Investments

4 Over International, LLC

Commercial printing

4 Over International, LLC Commercial Printing

First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022 7.00 % $ 5,676 $ 5,654 $ 5,264 (6)(20)

First Lien Revolver, PRIME+5.00% cash due 6/7/2021

99 Cents Only Stores LLC

General merchandise stores

First Lien Revolver, LIBOR+6.00% cash due 6/7/2021 7.00 % 2,232 2,214 2,070 (6)(20)

99 Cents Only Stores LLC General Merchandise Stores

First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022 6.00 % 19,431 19,220 17,877 (6)

Access CIG, LLC

Diversified support services

Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026

19,220 17,877

Holdings II SÀRL Biotechnology

First Lien Term Loan, 12.00% cash due 4/27/2023 22,619 22,619 26,464 (11)(20)

First Lien Delayed Draw Term Loan, 12.00% cash due 4/27/2023 1,508 1,508 1,780 (11)(19)(20)

24,127 28,244

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Access CIG, LLC Diversified Support Services

Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026 7.91 % $ 15,000 $ 14,909 $ 14,250 (6)

14,909 14,250

Accupac, Inc.

Personal Products

First Lien Term Loan, LIBOR+6.00% cash due 1/17/2026 7.00 % 12,487 12,294 12,487 (6)(20)

First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026 — (36) — (6)(19)(20)

First Lien Revolver, LIBOR+6.00% cash due 1/17/2026 7.00 % 1,564 1,540 1,564 (6)(20)

13,798 14,051

Application Software

First Lien Term Loan, LIBOR+7.00% cash due 10/31/2025 8.00 % 20,950 20,594 20,499 (6)(20)

First Lien Revolver, LIBOR+7.00% cash due 10/31/2025 — (39) (48) (6)(19)(20)

20,555 20,451

Aden & Anais Merger Sub, Inc.

3 unchanged sentences

9,073 shares of common stock 13,611 13,440 (20)

13,611 13,440

AI Ladder (Luxembourg) Subco S.a.r.l.

1 unchanged sentence

First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 4.65 % 21,374 20,934 20,465 (6)(11)

20,934 20,465

AI Sirona (Luxembourg) Acquisition S.a.r.l.

1 unchanged sentence

Second Lien Term Loan, EURIBOR+7.25% cash due 9/28/2026 7.25 % € 24,838 27,668 28,435 (6)(11)(20)

Air Medical Group Holdings, Inc.

Healthcare services

27,668 28,435

Hotels, Resorts & Cruise Lines

First Lien Term Loan, LIBOR+7.50% cash due 4/17/2025 8.50 % $ 15,743 15,378 17,081 (6)

15,378 17,081

AirStrip Technologies, Inc.

Application Software

22,858.71 Series C-1 Preferred Stock Warrants (exercise price $34.99757) expiration date 5/11/2025

Airxcel, Inc.

Household appliances

First Lien Term Loan, LIBOR+4.50% cash due 4/28/2025

5,715 Common Stock Warrants (exercise price $139.99) expiration date 5/11/2025 90 — (20)

Aldevron, L.L.C.

1 unchanged sentence

First Lien Term Loan, LIBOR+4.25% cash due 10/12/2026 5.25 % 7,960 7,880 7,977 (6)

Algeco Scotsman Global Finance Plc

Construction & engineering

Fixed Rate Bond, 8.00% cash due 2/15/2023

Allen Media, LLC

Movies & entertainment

First Lien Term Loan, LIBOR+6.50% cash due 8/30/2023

Altice France S.A.

Integrated telecommunication services

Fixed Rate Bond, 8.13% cash due 1/15/2024

Algeco Scotsman Global Finance Plc Construction & Engineering

Fixed Rate Bond, 8.00% cash due 2/15/2023 13,524 13,277 13,465 (11)

13,277 13,465

Alvotech Holdings S.A.

2 unchanged sentences

Fixed Rate Bond 15% PIK Note B due 12/13/2023 14,800 18,849 19,196 (11)(20)

Ancile Solutions, Inc.

Application software

First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021

Application software

37,698 39,164

Amplify Finco Pty Ltd.

Movies & Entertainment

First Lien Term Loan, LIBOR+4.00% cash due 11/26/2026 4.75 % 995 909 856 (6)(11)(20)

First Lien Revolver, LIBOR+7.25% cash due 1/10/2025

Property & casualty insurance

Second Lien Term Loan, LIBOR+8.00% cash due 11/26/2027 8.75 % 12,500 12,188 9,438 (6)(11)(20)

13,097 10,294

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

Healthcare distributors

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Ancile Solutions, Inc.

Application Software

First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021 8.00 % $ 8,181 $ 8,150 $ 8,124 (6)(20)

Application Software

First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 8.25 % 23,764 23,420 23,297 (6)(20)

First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 — (22) (30) (6)(19)(20)

23,398 23,267

Ardonagh Midco 3 PLC Insurance Brokers

First Lien Term Loan, EURIBOR+7.50% cash due 7/14/2026 8.50 % € 1,440 1,594 1,640 (6)(11)(20)

First Lien Term Loan, UK LIBOR+7.50% cash due 7/14/2026 8.25 % £ 11,303 13,752 14,188 (6)(11)(20)

First Lien Delayed Draw Term Loan, UK LIBOR+7.50% cash due 7/14/2026 £ — — — (6)(11)(19)(20)

Fixed Rate Bond, 11.50% cash due 1/15/2027 $ 2,222 2,200 2,255 (11)

Department stores

17,546 18,083

Associated Asphalt Partners, LLC Construction Materials

First Lien Term Loan, LIBOR+5.25% cash due 4/5/2024 6.25 % $ 2,554 2,150 2,073 (6)

Asurion, LLC Property & Casualty Insurance

Second Lien Term Loan, LIBOR+6.50% cash due 8/4/2025 6.65 % 19,985 19,950 20,058 (6)

19,950 20,058

Athenex, Inc.

Pharmaceuticals

First Lien Term Loan, 11.00% cash due 6/19/2026 28,475 27,252 28,261 (11)(20)

First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026 — (321) (171) (11)(19)(20)

266,052 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027 915 785 (11)(20)

27,846 28,875

Aurora Lux Finco S.À.R.L.

Airport Services

First Lien Term Loan, LIBOR+6.00% cash due 12/24/2026 7.00 % 22,885 22,376 21,283 (6)(11)(20)

22,376 21,283

Blackhawk Network Holdings, Inc.

1 unchanged sentence

Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026 7.19 % 26,250 26,049 24,150 (6)

26,049 24,150

Boxer Parent Company Inc.

1 unchanged sentence

First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025 4.40 % 13,775 13,666 13,407 (6)

13,666 13,407

BX Commercial Mortgage Trust 2020-VIVA Diversified Real Estate Activities

Class D Variable Notes due 3/9/2044 3.67 % 12,556 10,482 11,451 (6)(11)(20)

Class E Variable Notes due 3/9/2044 3.67 % 6,221 4,806 5,395 (6)(11)(20)

15,288 16,846

California Pizza Kitchen, Inc.

First Lien Term Loan, LIBOR+8.00% cash due 8/23/2022 3,222 3,081 983 (6)(21)

Cenegenics, LLC

Healthcare services

First Lien Term Loan, 9.75% cash 2.00% PIK due 9/30/2019

First Lien Revolver, 15.00% cash due 9/30/2019

452,914.87 Common Units in Cenegenics, LLC

345,380.141 Preferred Units in Cenegenics, LLC

Chief Power Finance II, LLC Independent Power Producers & Energy Traders

First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022 7.50 % 21,850 21,462 20,812 (6)(20)

21,462 20,812

CITGO Holding, Inc.

Oil & Gas Refining & Marketing

Fixed Rate Bond, 9.25% cash due 8/1/2024

First Lien Term Loan, LIBOR+7.00% cash due 8/1/2023 8.00 % 11,753 11,570 11,081 (6)

Fixed Rate Bond, 9.25% cash due 8/1/2024 10,672 10,672 10,192

22,242 21,273

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2020

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

CITGO Petroleum Corp.

1 unchanged sentence

First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024 6.00 % $ 8,979 $ 8,890 $ 8,553 (6)

Alternative carriers

First Lien Term Loan, LIBOR+4.50% cash due 9/23/2026

Continental Intermodal Group LP Oil & Gas Storage & Transportation

First Lien Term Loan, LIBOR+9.50% PIK due 1/28/2025 24,741 24,741 21,753 (6)(20)

Common Stock Warrants expiration date 7/28/2025 — 1,672 (20)

24,741 23,425

Convergeone Holdings, Inc.

1 unchanged sentence

First Lien Term Loan, LIBOR+5.00% cash due 1/4/2026 5.15 % 14,621 14,169 13,465 (6)

14,169 13,465

Application Software

417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021 105 395 (20)

Covia Holdings Corporation

Oil & gas equipment services

First Lien Term Loan, LIBOR+4.00% cash due 6/1/2025

DigiCert, Inc.

Internet services & infrastructure

Corrona, LLC Health Care Services

First Lien Term Loan, LIBOR+5.50% cash due 12/13/2025 6.50 % 10,300 10,144 10,152 (6)(20)

Dominion Diagnostics, LLC

Healthcare services

Subordinated Term Loan, 11.00% cash 1.00% PIK due 10/18/2019

First Lien Term Loan, PRIME+4.00% cash due 4/8/2019

First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 12/13/2025 — (32) (52) (6)(19)(20)

First Lien Revolver, PRIME+4.50% cash due 12/13/2025 7.75 % 305 277 279 (6)(19)(20)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2019

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

The Dun & Bradstreet Corporation

Research & consulting services

1,099 Class A2 Common Units in Corrona Group Holdings, L.P.

1,038 1,038 (20)

11,427 11,417

Coyote Buyer, LLC Specialty Chemicals

First Lien Term Loan, LIBOR+6.00% cash due 2/6/2026 7.00 % 13,123 12,992 12,992 (6)(20)

Fixed Rate Bond 6.875% cash due 8/15/2026

Eagleview Technology Corporation

Application software

First Lien Revolver, LIBOR+6.00% cash due 2/6/2025 — (9) (9) (6)(19)(20)

12,983 12,983

CTOS, LLC Trading Companies & Distributors

First Lien Term Loan, LIBOR+4.25% cash due 4/18/2025 4.40 % 10,139 10,228 10,069 (6)

10,228 10,069

Eagleview Technology Corporation Application Software

Second Lien Term Loan, LIBOR+7.50% cash due 8/14/2026 8.50 % 12,000 11,880 10,440 (6)(20)

EHR Canada, LLC

11,880 10,440

EHR Canada, LLC Food Retail

First Lien Term Loan, LIBOR+8.00% cash due 12/4/2020 9.00 % 6,861 6,851 6,998 (6)(20)

EOS Fitness Opco Holdings, LLC

Leisure facilities

EOS Fitness Opco Holdings, LLC Leisure Facilities

487.5 Class A Preferred Units, 12% 488 49 (20)

12,500 Class B Common Units — — (20)

Equitrans Midstream Corp.

Oil & gas storage & transportation

First Lien Term Loan, LIBOR+4.50% cash due 1/31/2024

ExamSoft Worldwide, Inc.

1 unchanged sentence

180,707 Class C Units in ExamSoft Investor LLC 181 500 (20)

GI Chill Acquisition LLC

Managed healthcare

Fortress Biotech, Inc.

Biotechnology

First Lien Term Loan, 11.00% cash due 8/27/2025 8,346 7,842 7,908 (11)(20)

243,348 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030 258 419 (11)(20)

GI Chill Acquisition LLC Managed Health Care

First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025 4.22 % 17,640 17,552 17,331 (6)(20)

Second Lien Term Loan, LIBOR+7.50% cash due 8/6/2026 7.72 % 10,000 9,927 9,350 (6)(20)

GKD Index Partners, LLC

Specialized finance

27,479 26,681

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2020

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

GKD Index Partners, LLC Specialized Finance

First Lien Term Loan, LIBOR+7.00% cash due 6/29/2023 8.00 % $ 20,933 $ 20,818 $ 20,577 (6)(20)

First Lien Revolver, LIBOR+7.00% cash due 6/29/2023 8.00 % 924 915 904 (6)(19)(20)

Interactive media & services

Second Lien Term Loan, LIBOR+7.50% cash due 10/12/2026

Guidehouse LLP

Research & consulting services

21,733 21,481

Global Medical Response Health Care Services

First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025 5.25 % 6,256 6,152 6,084 (6)

Guidehouse LLP Research & Consulting Services

First Lien Term Loan, LIBOR+4.50% cash due 5/1/2025 4.65 % 4,949 4,907 4,912 (6)

Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026 8.15 % 20,000 19,930 19,300 (6)(20)

HealthEdge Software, Inc.

Application software

482,453 Series A-3 Preferred Stock Warrants (exercise price $1.450918) expiration date 9/30/2023

I Drive Safely, LLC

24,837 24,212

Gulf Operating, LLC Oil & Gas Storage & Transportation

First Lien Term Loan, LIBOR+5.25% cash due 8/25/2023 6.25 % 3,275 1,874 2,324 (6)

Houghton Mifflin Harcourt Publishers Inc.

Education Services

First Lien Term Loan, LIBOR+6.25% cash due 11/22/2024 7.25 % 6,738 6,508 6,300 (6)(11)

I Drive Safely, LLC Education Services

125,079 Class A Common Units of IDS Investments, LLC 1,000 200 (20)

IBG Borrower LLC

Apparel, accessories & luxury goods

IBG Borrower LLC Apparel, Accessories & Luxury Goods

First Lien Term Loan, LIBOR+7.00% cash due 8/2/2022 7.25 % 9,056 8,569 7,856 (6)(20)

2 unchanged sentences

First Lien Revolver, LIBOR+6.50% cash due 9/12/2024 — (15) (7) (6)(19)(20)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2019

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

Integral Development Corporation

Other diversified financial services

16,478 16,577

Immucor, Inc.

Health Care Supplies

First Lien Term Loan, LIBOR+5.75% cash due 7/2/2025 6.75 % 6,477 6,354 6,347 (6)(20)

First Lien Revolver, LIBOR+5.75% cash due 7/2/2025 — (10) (11) (6)(19)(20)

Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/2025 9.00 % 15,611 15,316 15,298 (6)(20)

21,660 21,634

Integral Development Corporation Other Diversified Financial Services

1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024 113 — (20)

Kellermeyer Bergensons Services, LLC

Environmental & facilities services

Second Lien Term Loan, LIBOR+8.50% cash due 4/29/2022

L Squared Capital Partners LLC

Multi-sector holdings

L Squared Capital Partners LLC Multi-Sector Holdings

2.00% limited partnership interest 887 2,192 (11)(16)

Lanai Holdings III, Inc.

Healthcare distributors

Health Care Distributors

First Lien Term Loan, LIBOR+4.75% cash due 8/29/2022 5.75 % 12,948 12,810 12,260 (6)

12,810 12,260

Lannett Company, Inc.

1 unchanged sentence

First Lien Term Loan, LIBOR+5.00% cash due 11/25/2020 6.00 % 460 460 456 (6)(11)

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2020

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Lift Brands Holdings, Inc.

4 unchanged sentences

First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026 5.15 % $ 39,500 39,023 37,723 (6)(20)

Long's Drugs Incorporated

Pharmaceuticals

50 Series A Preferred Shares in Long's Drugs Incorporated

25 Series B Preferred Shares in Long's Drugs Incorporated

39,023 37,723

LogMeIn, Inc.

Application Software

Second Lien Term Loan, LIBOR+9.00% cash due 8/31/2028 9.16 % 9,293 8,831 9,247 (6)

LTI Holdings, Inc.

Auto parts & equipment

Electronic Components

First Lien Term Loan, LIBOR+4.75% cash due 7/24/2026 4.90 % 1,794 1,513 1,685 (6)

First Lien Term Loan, LIBOR+3.50% cash due 9/6/2025 3.65 % 18,082 15,087 16,884 (6)

Second Lien Term Loan, LIBOR+6.75% cash due 9/6/2026 6.90 % 9,000 9,000 7,983 (6)

Lytx Holdings, LLC

Research & consulting services

3,500 Class B Units

Maravai Intermediate Holdings, LLC

Biotechnology

25,600 26,552

Maravai Intermediate Holdings, LLC Biotechnology

First Lien Term Loan, LIBOR+4.25% cash due 8/1/2025 5.25 % 11,760 11,642 11,789 (6)(20)

11,642 11,789

Mauser Packaging Solutions Holding Company Metal & Glass Containers

Fixed Rate Bond, 8.50% cash due 4/15/2024 11,378 11,273 11,833

11,273 11,833

Mayfield Agency Borrower Inc.

1 unchanged sentence

First Lien Term Loan, LIBOR+4.50% cash due 2/28/2025 4.65 % 28,823 28,045 26,679 (6)

28,045 26,679

McAfee, LLC Systems Software

Second Lien Term Loan, LIBOR+8.50% cash due 9/29/2025 9.50 % 7,000 7,028 7,074 (6)

Systems software

MHE Intermediate Holdings, LLC Diversified Support Services

First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024 6.00 % 2,910 2,888 2,832 (6)(20)

Mindbody, Inc.

Internet Services & Infrastructure

First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/2025 8.00 % 29,097 28,675 26,828 (6)(20)

First Lien Revolver, LIBOR+8.00% cash due 2/14/2025 — (44) (241) (6)(19)(20)

28,631 26,587

Ministry Brands, LLC Application Software

First Lien Revolver, LIBOR+5.00% cash due 12/2/2022 6.00 % 575 566 566 (6)(19)(20)

Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023 10.25 % 9,000 8,934 8,923 (6)(20)

MRI Software LLC Application Software

First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026 6.50 % 14,369 14,242 14,022 (6)(20)

First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026 — (59) (144) (6)(19)(20)

First Lien Revolver, LIBOR+5.50% cash due 2/10/2026 — (13) (31) (6)(19)(20)

14,170 13,847

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

MHE Intermediate Holdings, LLC

Diversified support services

First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024

Mindbody, Inc.

Internet services & infrastructure

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

NeuAG, LLC Fertilizers & Agricultural Chemicals

First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024 7.00 % $ 35,306 $ 33,918 $ 33,894 (6)(20)

First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024 — (175) (175) (6)(19)(20)

33,743 33,719

NuStar Logistics, L.P.

Oil & Gas Refining & Marketing

Unsecured Delayed Draw Term Loan, 12.00% cash due 4/19/2023 — — — (19)(20)

Olaplex, Inc.

Personal Products

First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026 7.50 % 35,056 34,441 35,056 (6)(20)

First Lien Revolver, LIBOR+6.50% cash due 1/8/2025 7.50 % 1,917 1,852 1,917 (6)(19)(20)

Ministry Brands, LLC

Application software

Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023

Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/2023

First Lien Revolver, LIBOR+5.00% cash due 12/2/2022

Navicure, Inc.

Healthcare technology

Second Lien Term Loan, LIBOR+7.50% cash due 10/31/2025

Numericable SFR SA

Integrated telecommunication services

Fixed Rate Bond, 7.38% cash due 5/1/2026

OmniSYS Acquisition Corporation

Diversified support services

36,293 36,973

OmniSYS Acquisition Corporation Diversified Support Services

100,000 Common Units in OSYS Holdings, LLC 1,000 607 (20)

Integrated telecommunication services

Onvoy, LLC Integrated Telecommunication Services

Second Lien Term Loan, LIBOR+10.50% cash due 2/10/2025 11.50 % 16,750 16,750 15,142 (6)(20)

1 unchanged sentence

13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC — — (20)

P2 Upstream Acquisition Co.

Application software

First Lien Term Loan, LIBOR+4.00% cash due 10/30/2020

First Lien Revolver, LIBOR+4.00% cash due 2/1/2020

18,717 15,410

OZLM Funding III, Ltd.

Multi-Sector Holdings

Class DR Notes, LIBOR+7.77% cash due 1/22/2029 8.03 % 2,312 1,657 2,119 (6)(11)

PaySimple, Inc.

1 unchanged sentence

First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025 5.65 % 49,535 48,711 47,801 (6)(20)

First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 8/23/2025

Pingora MSR Opportunity Fund I-A, LP

Thrift & mortgage finance

48,711 47,801

Pingora MSR Opportunity Fund I-A, LP Thrifts & Mortgage Finance

1.86% limited partnership interest 938 353 (11)(16)(19)

5 unchanged sentences

126,127.80 Class A Common Units of Edmentum 126 — (20)

ProFrac Services, LLC Industrial Machinery

First Lien Term Loan, LIBOR+7.50% cash due 9/15/2023 8.75 % 15,170 15,081 11,643 (6)(20)

15,081 11,643

Project Boost Purchaser, LLC Application Software

Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027 8.15 % 3,750 3,750 3,375 (6)(20)

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

Project Boost Purchaser, LLC

Application software

First Lien Term Loan, LIBOR+3.50% cash due 6/1/2026

Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027

ProFrac Services, LLC

Industrial machinery

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Pug LLC Internet & Direct Marketing Retail

First Lien Term Loan, LIBOR+8.00% cash due 2/12/2027 8.75 % $ 15,740 $ 14,802 $ 15,307 (6)

14,802 15,307

QuorumLabs, Inc.

1 unchanged sentence

64,887,669 Junior-2 Preferred Stock 375 — (20)

Refac Optical Group

Specialty stores

Refac Optical Group Specialty Stores

1,550.9435 Shares of Common Stock in Refac Holdings, Inc.

7 unchanged sentences

Fixed Rate Zero Coupon Bond due 8/15/2026 15,585 12,069 12,468 (20)

12,069 12,468

ShareThis, Inc.

3 unchanged sentences

Biotechnology

125,000 Common Stock Warrants (exercise price $3.94) expiration date 11/3/2029 — 1,123 (11)(20)

Supermoose Borrower, LLC Application Software

First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025 3.90 % 10,196 8,925 9,193 (6)

First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 11/7/2023

Surgery Center Holdings, Inc.

Health Care Facilities

First Lien Term Loan, LIBOR+3.25% cash due 9/3/2024 4.25 % 3,850 3,133 3,640 (6)(11)

Swordfish Merger Sub LLC Auto Parts & Equipment

Second Lien Term Loan, LIBOR+6.75% cash due 2/2/2026 7.75 % 12,500 12,458 10,563 (6)(20)

12,458 10,563

Stock Warrants Strike (exercise price $3.28) expiration date 5/7/2029

Stock Warrants Strike (exercise price $3.94) expiration date 11/3/2029

Swordfish Merger Sub LLC

Auto parts & equipment

Tacala, LLC Restaurants

Second Lien Term Loan, LIBOR+7.50% cash due 2/4/2028 7.65 % 7,276 7,167 6,903 (6)

TerSera Therapeutics, LLC

Pharmaceuticals

TerSera Therapeutics LLC Pharmaceuticals

Second Lien Term Loan, LIBOR+9.50% cash due 3/30/2024 10.50 % 29,663 29,236 29,371 (6)(20)

Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 12/31/2020

668,879 Common Units of TerSera Holdings LLC 2,192 3,487 (20)

TigerText, Inc.

31,428 32,858

TIBCO Software Inc.

Application Software

Second Lien Term Loan, LIBOR+7.25% cash due 3/3/2028 7.40 % 15,000 14,925 14,766 (6)

14,925 14,766

TigerConnect, Inc.

Application Software

299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/2024 60 525 (20)

6 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

Tribe Buyer LLC

Human resource & employment services

First Lien Term Loan, LIBOR+4.50% cash due 2/16/2024

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Truck Hero, Inc.

1 unchanged sentence

Second Lien Term Loan, LIBOR+8.25% cash due 4/21/2025 9.25 % $ 21,500 $ 21,191 $ 20,819 (6)(20)

Uber Technologies, Inc.

Application software

21,191 20,819

Renal Care, Inc.

Health Care Services

First Lien Term Loan, LIBOR+5.00% cash due 6/26/2026 5.15 % 1,122 934 1,096 (6)

Uniti Group LP

Uniti Group Inc.

Specialized REITs

First Lien Term Loan, LIBOR+5.00% cash due 10/24/2022

Trading companies & distributors

First Lien Term Loan, LIBOR+5.50% cash due 4/18/2023

Veritas US Inc.

Application software

First Lien Term Loan, LIBOR+4.50% cash due 1/27/2023

21,072 Common Units — 133 222 (11)(12)

Verscend Holding Corp.

Healthcare technology

Health Care Technology

First Lien Term Loan, LIBOR+4.50% cash due 8/27/2025 4.65 % 14,525 14,479 14,429 (6)

Fixed Rate Bond, 9.75% cash due 8/15/2026 7,000 7,020 7,629

21,499 22,058

Vertex Aerospace Services Corp.

1 unchanged sentence

First Lien Term Loan, LIBOR+4.50% cash due 6/29/2025 4.65 % 10,168 10,133 10,073 (6)

10,133 10,073

Vitalyst Holdings, Inc.

2 unchanged sentences

7,500 Class A Common Stock Units 75 — (20)

Windstream Services, LLC

Integrated telecommunication services

Fixed Rate Bond, 8.63% cash due 10/31/2025

WP CPP Holdings, LLC

Aerospace & defense

William Morris Endeavor Entertainment, LLC Movies & Entertainment

First Lien Term Loan, LIBOR+8.50% cash due 5/18/2025 9.50 % 33,298 31,594 33,298 (6)(20)

31,594 33,298

Windstream Services II, LLC Integrated Telecommunication Services

First Lien Term Loan, LIBOR+6.25% cash due 9/21/2027 7.25 % 25,935 24,900 25,168 (6)

6,129 Shares of Common Stock in Windstream Holdings II, LLC 53 69 (20)

37,215 Warrants in Windstream Holdings II, LLC 913 444 (20)

25,866 25,681

WP CPP Holdings, LLC Aerospace & Defense

Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026 8.75 % 15,000 14,893 11,700 (6)(20)

14,893 11,700

WPEngine, Inc.

Application Software

First Lien Term Loan, LIBOR+6.50% cash due 3/27/2026 7.50 % 14,188 13,863 13,949 (6)(20)

First Lien Delayed Draw Term Loan, LIBOR+6.50% cash due 3/27/2026 — (602) (443) (6)(19)(20)

13,261 13,506

xMatters, Inc.

1 unchanged sentence

600,000 Common Stock Warrants (exercise price $0.593333) expiration date 2/26/2025 709 336 (20)

Yeti Holdings, Inc.

Leisure products

537,629 Shares Yeti Holdings, Inc.

Specialty Chemicals

Second Lien Term Loan, LIBOR+8.25% cash due 8/11/2025

First Lien Term Loan, LIBOR+4.00% cash due 8/12/2024 5.00 % 1,955 1,895 1,845 (6)

Zephyr Bidco Limited

Specialized finance

Second Lien Term Loan, LIBOR+8.25% cash due 8/11/2025 9.25 % 30,000 29,908 24,180 (6)(20)

31,803 26,025

Zephyr Bidco Limited Specialized Finance

Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/2026 7.55 % £ 18,000 23,705 21,176 (6)(11)

23,705 21,176

Total Non-Control/Non-Affiliate Investments (149.3% of net assets) $ 1,415,669 $ 1,365,957

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5)

Cash Interest Rate (6)

Principal (7)

Total Non-Control/Non-Affiliate Investments (131.1% of net assets)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Total Portfolio Investments (172.0% of net assets) $ 1,669,170 $ 1,573,851

Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents

JP Morgan Prime Money Market Fund, Institutional Shares

$ 35,248 $ 35,248

Other cash accounts

Total Cash and Cash Equivalents and Restricted Cash (1.7% of net assets)

Total Portfolio Investments, Cash and Cash Equivalents and Restricted Cash (156.2% of net assets)

Derivative Instrument

Notional Amount to be Purchased

Notional Amount to be Sold

Maturity Date

Cumulative Unrealized Appreciation /(Depreciation)

Foreign currency forward contract

JPMorgan Chase Bank, N.A.

Foreign currency forward contract

JPMorgan Chase Bank, N.A.

Total Cash and Cash Equivalents (4.3% of net assets) $ 39,096 $ 39,096

Total Portfolio Investments and Cash and Cash Equivalents (176.3% of net assets) $ 1,708,266 $ 1,612,947

Derivative Instrument Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Counterparty Cumulative Unrealized Appreciation /(Depreciation)

Foreign currency forward contract $ 35,577 £ 27,494 11/12/2020 JPMorgan Chase Bank, N.A.

Foreign currency forward contract $ 30,260 € 25,614 11/12/2020 JPMorgan Chase Bank, N.A.

Oaktree Specialty Lending Corporation

8 unchanged sentences

These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.

With the exception of investments held by the Company’s wholly-owned subsidiaries that each formerly held a license from the U.S.

Small Business Administration (“SBA”) to operate as a small business investment company (“SBIC”), each of the Company's investments is pledged as collateral under the Credit Facility (as defined in Note 6 to the accompanying notes to the Consolidated Financial Statements).

(5) Each of the Company's investments is pledged as collateral under the Credit Facility (as defined in Note 6 to the accompanying notes to the Consolidated Financial Statements).

(6) The interest rate on the principal balance outstanding for all floating rate loans is indexed to the London Interbank Offered Rate ("LIBOR") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option.

3 unchanged sentences

dollars unless otherwise noted.

As of September 30, 2019 , the reference rates for the Company's variable rate loans were the 30-day LIBOR at 2.04%, the 60-day LIBOR at 2.09%, the 90-day LIBOR at 2.10%, the 180-day LIBOR at 2.06%, the PRIME at 5.00%, the 30-day UK LIBOR at 0.71% and the 30-day EURIBOR at (0.51)%.

As of September 30, 2020, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.22%, the 180-day LIBOR at 0.27%, the 360-day LIBOR at 0.37%, the PRIME at 3.25%, the 30-day UK LIBOR at 0.05%, the 180-day UK LIBOR at 0.22%, the 30-day EURIBOR at (0.57)% and the 180-day EURIBOR at (0.36)%.

Most loans include an interest floor, which generally ranges from 0% to 1%.

4 unchanged sentences

(8) Control Investments generally are defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement).

(9) As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" these portfolio companies as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement).

See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the year ended September 30, 2020 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

6 unchanged sentences

(12) Income producing through payment of dividends or distributions.

During the year ended September 30, 2019 , the portfolio company was renamed from Eton to Guidehouse LLP.

(13) PIK interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment.

As a result, the principal amount of the investment does not increase over time for accumulated PIK interest.

As of September 30, 2020, the accumulated PIK interest balance for each of the A notes and the B notes was $4.3 million.

The fair value of this investment is inclusive of PIK.

(14) See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.

On December 28, 2018, the mezzanine notes issued by SLF Repack Issuer 2016, LLC, a wholly-owned, special purpose issuer subsidiary of Senior Loan Fund JV I, LLC ("SLF JV I"), were redeemed and the Company purchased subordinated notes and LLC equity interests issued by SLF JV I.

Prior to December 28, 2018, the mezzanine notes issued by SLF Repack Issuer 2016, LLC consisted of Class A mezzanine secured deferrable floating rate notes and Class B mezzanine secured deferrable fixed rate notes.

(15) This investment was on PIK non-accrual status as of September 30, 2020.

PIK non-accrual status is inclusive of other non-cash income, where applicable.

(16) This investment was valued using net asset value as a practical expedient for fair value.

5 unchanged sentences

A negative fair value may result from the unfunded commitment being valued below par.

As of September 30, 2019 , these investments are categorized as Level 3 within the fair value hierarchy established by ASC 820.

This investment was on cash non-accrual status as of September 30, 2019 .

Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

This investment was on PIK non-accrual status as of September 30, 2019 .

PIK non-accrual status is inclusive of other non-cash income, where applicable.

Payments on this investment are currently past due.

PIK interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment.

As a result, the principal amount of the investment does not increase over time for accumulated PIK interest.

As of September 30, 2019 , the accumulated PIK interest balance for each of the A notes and the B notes was $1.8 million.

The fair value of this investment is inclusive of PIK.

During the year ended September 30, 2019 , the portfolio company was renamed from Keypath Education, Inc.

to Thruline Marketing, Inc.

(20) As of September 30, 2020, these investments were categorized as Level 3 within the fair value hierarchy established by ASC 820.

(21) This investment was on cash non-accrual status as of September 30, 2020.

Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

See notes to Consolidated Financial Statements.

3 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Control Investments

C5 Technology Holdings, LLC

Data processing & outsourced services

829 Common Units $ — $ — (20)

34,984,460.37 Preferred Units 34,984 34,984 (20)

34,984 34,984

First Star Speir Aviation Limited

Airlines (10)

First Lien Term Loan, 9.00% cash due 12/15/2020 $ 11,510 2,140 11,510 (11)(20)

100% equity interest 8,500 4,630 (11)(12)(20)

Keypath Education, Inc.

First Lien Term Loan, LIBOR+7% (1% floor) cash due 4/3/2022

First Lien Revolver, LIBOR+7.75% (1% floor) cash due 4/3/2022

9,073 Class A Units in FS AVI Holdco, LLC

10,640 16,140

New IPT, Inc.

Oil & gas equipment services

First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/17/2021

Second Lien Term Loan, LIBOR+5.1% (1% floor) cash due 9/17/2021

First Lien Revolver, LIBOR+5% (1% floor) cash due 3/17/2021

First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021

7.10 % 3,256 3,256 3,256 (6)(20)

First Lien Revolver, LIBOR+5.00% cash due 3/17/2021

7.10 % 1,009 1,009 1,009 (6)(19)(20)

50.087 Class A Common Units in New IPT Holdings, LLC — 2,903 (20)

1 unchanged sentence

Multi-sector holdings (14)(15)

Class A Mezzanine Secured Deferrable Floating Rate Notes due 2036 in SLF Repack Issuer 2016 LLC

Class B Mezzanine Secured Deferrable Fixed Rate Notes, 10% cash due 2036 in SLF Repack Issuer 2016 LLC

Subordinated Debt, LIBOR+7.00% cash due 12/29/2028

9.39 % 96,250 96,250 96,250 (6)(11)(20)

87.5% LLC equity interest

49,322 30,052 (11)(16)(19)

145,572 126,302

Thruline Marketing, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022 9.10 % 18,146 18,146 18,146 (6)(20)

First Lien Revolver, LIBOR+7.75% cash due 4/3/2022 — — — (6)(19)(20)

9,073 Class A Units in FS AVI Holdco, LLC

10,648 6,438 (20)

28,794 24,584

Total Control Investments (22.5% of net assets)

$ 224,255 $ 209,178

Affiliate Investments (17)

Assembled Brands Capital LLC Specialized finance

First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 10/17/2023 8.10 % $ 5,585 $ 5,585 $ 5,585 (6)(19)(20)

1,609,201 Class A Units 765 782 (20)

1,019,168.80 Preferred Units, 6% 1,019 1,019 (20)

70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029 — — (20)

Caregiver Services, Inc.

1 unchanged sentence

1,080,399 shares of Series A Preferred Stock, 10%

1,080 1,784 (20)

Total Affiliate Investments (1.0% of net assets)

$ 8,449 $ 9,170

Non-Control/Non-Affiliate Investments

4 Over International, LLC

Commercial printing

First Lien Term Loan, LIBOR+6% (1% floor) cash due 6/7/2022

First Lien Revolver, LIBOR+6% (1% floor) cash due 6/7/2021

4 Over International, LLC Commercial printing

First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022

8.04 % $ 5,799 $ 5,764 $ 5,688 (6)(20)

First Lien Revolver, PRIME+5.00% cash due 6/7/2021

10.00 % 255 238 212 (6)(19)(20)

99 Cents Only Stores LLC

1 unchanged sentence

First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022 7.10 % 19,326 18,946 16,934 (6)

18,946 16,934

Access CIG, LLC

1 unchanged sentence

Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026 10.07 % 15,000 14,892 15,000 (6)(20)

Second Lien Delayed Draw Term Loan, LIBOR+7.75% cash due 2/27/2026

Aden & Anais Merger Sub, Inc.

Apparel, accessories & luxury goods

51,645 Common Units in Aden & Anais Holdings, Inc.

Advanced Pain Management

Healthcare services

First Lien Term Loan, LIBOR+8.5% (1.25% floor) cash due 11/30/2018

14,892 15,000

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Aden & Anais Merger Sub, Inc.

Apparel, accessories & luxury goods

51,645 Common Units in Aden & Anais Holdings, Inc.

$ 5,165 $ — (20)

AdVenture Interactive, Corp.

9,073 shares of common stock 13,611 12,677 (20)

13,611 12,677

AI Ladder (Luxembourg) Subco S.a.r.l.

1 unchanged sentence

First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 6.60 % $ 21,752 21,210 20,032 (6)(11)

21,210 20,032

AI Sirona (Luxembourg) Acquisition S.a.r.l.

Pharmaceuticals

Second Lien Term Loan, EURIBOR+7.25% (0% Floor) cash due 7/10/2026

Second Lien Term Loan, EURIBOR+7.25% cash due 7/10/2026 7.25 % € 17,500 20,035 18,673 (6)(11)

20,035 18,673

Air Medical Group Holdings, Inc.

Healthcare services

First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025 6.29 % $ 6,321 6,192 5,936 (6)

AirStrip Technologies, Inc.

4 unchanged sentences

First Lien Term Loan, LIBOR+4.50% cash due 4/28/2025 6.54 % 7,900 7,837 7,614 (6)

Algeco Scotsman Global Finance Plc

Construction & engineering

Fixed Rate Bond 10% cash due 8/15/2023

Aldevron, L.L.C.

Biotechnology

First Lien Term Loan, LIBOR+4.25% cash due 9/20/2026 6.36 % 8,000 7,920 8,040 (6)

Algeco Scotsman Global Finance Plc Construction & engineering

Fixed Rate Bond, 8.00% cash due 2/15/2023 23,915 23,443 23,982 (11)

Allen Media, LLC

Movies & entertainment

First Lien Term Loan, LIBOR+6.5% (1% floor) cash due 8/30/2023

Allied Universal Holdco LLC

Security & alarm services

First Lien Term Loan, LIBOR+3.75% (1% floor) cash due 7/28/2022

Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 7/28/2023

23,443 23,982

Allen Media, LLC Movies & entertainment

First Lien Term Loan, LIBOR+6.50% cash due 8/30/2023 8.60 % 19,238 18,858 18,613 (6)(20)

18,858 18,613

Altice France S.A.

2 unchanged sentences

Fixed Rate Bond, 7.63% cash due 2/15/2025 2,000 2,012 2,083 (11)

Alvotech Holdings S.A.

Biotechnology

Fixed Rate Bond 15% PIK Note A due 12/13/2023 14,800 16,304 18,089 (11)(13)(20)

Fixed Rate Bond 15% PIK Note B due 12/13/2023 14,800 16,304 16,609 (11)(13)(20)

32,608 34,698

Ancile Solutions, Inc.

Application software

First Lien Term Loan, LIBOR+7% (1% floor) cash due 6/30/2021

Aretec Group, Inc.

Investment banking & brokerage

Second Lien Exit Term Loan, PRIME+2% cash due 5/23/2021

Asset International, Inc.

Research & consulting services

Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/29/2025

Property & casualty insurance

First Lien Term Loan, LIBOR+6.5% (1% floor) cash due 8/4/2025

First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021 9.10 % 8,677 8,591 8,504 (6)(20)

Application software

First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 9.56 % 23,764 23,340 23,325 (6)(20)

First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 — (27) (28) (6)(19)(20)

23,313 23,297

Asurion, LLC Property & casualty insurance

Second Lien Term Loan, LIBOR+6.50% cash due 8/4/2025 8.54 % 22,000 21,954 22,382 (6)

21,954 22,382

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Commodity chemicals

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Healthcare distributors

Fixed Rate Bond, 9.00% cash due 10/1/2025 $ 3,000 $ 2,975 $ 3,379

Department stores

First Lien Term Loan, LIBOR+4.75% (1% Floor) cash due 12/12/2022

BeyondTrust Holdings LLC

Application software

3.01% Class A membership interests

First Lien Term Loan, LIBOR+4.75% cash due 12/12/2022 6.80 % 653 585 480 (6)

Blackhawk Network Holdings, Inc.

Data processing & outsourced services

Second Lien Term Loan, LIBOR+7% (1% Floor) cash due 6/15/2026

Blueline Rental Finance Corp

Industrial machinery

Fixed Rate Bond 9.25% cash due 3/15/2024

Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026 9.06 % 26,250 26,013 26,283 (6)

26,013 26,283

Boxer Parent Company Inc.

Systems software

First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025 6.29 % 13,915 13,798 13,416 (6)

13,798 13,416

California Pizza Kitchen, Inc.

First Lien Term Loan, LIBOR+6% (1% floor) cash due 8/23/2022

Cenegenics, LLC

Healthcare services

First Lien Term Loan, LIBOR+6.00% cash due 8/23/2022 8.53 % 3,122 3,097 2,800 (6)

Cenegenics, LLC Healthcare services (23)

First Lien Term Loan, 9.75% cash 2.00% PIK due 9/30/2019 29,781 27,738 — (20)(21)

2 unchanged sentences

345,380.141 Preferred Units in Cenegenics, LLC 300 — (20)

CITGO Holdings Inc.

CITGO Holding, Inc.

Oil & gas refining & marketing

Fixed Rate Bond, 9.25% cash due 8/1/2024 10,672 10,672 11,366

Comprehensive Pharmacy Services LLC

Pharmaceuticals

20,000 Common Shares in MCP CPS Group Holdings, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 8/1/2023 10,000 9,855 10,219 (6)

20,527 21,585

CITGO Petroleum Corp.

Oil & gas refining & marketing

First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024 7.10 % 9,950 9,851 10,012 (6)

Finco LLC Alternative carriers

First Lien Term Loan, LIBOR+4.50% cash due 9/23/2026 7.10 % 30,000 29,400 29,580 (6)(11)

29,400 29,580

Convergeone Holdings, Inc.

IT consulting & other services

First Lien Term Loan, LIBOR+5.00% cash due 1/4/2026 7.04 % 14,770 14,225 13,352 (6)

14,225 13,352

Application software

417,851 Series D Preferred Stock Warrants (exercise price $1.1966) expiration date 2/28/2021 105 411 (20)

Covia Holdings Corporation

Oil & gas equipment & services

First Lien Term Loan, LIBOR+3.75% (1% Floor) cash due 6/1/2025

DAE Aviation Holdings

Aerospace & defense

Fixed Rate Bond 10% cash due 7/15/2023

Technology distributors

First Lien Term Loan, LIBOR+8% (1% floor) cash due 12/7/2022

First Lien Revolver, LIBOR+8% (1% floor) cash due 12/7/2022

Covia Holdings Corporation Oil & gas equipment services

First Lien Term Loan, LIBOR+4.00% cash due 6/1/2025 6.31 % 7,900 7,900 6,484 (6)(11)

DigiCert, Inc.

Internet services & infrastructure

First Lien Term Loan, LIBOR+4.00% cash due 10/31/2024 6.04 % 4,222 4,184 4,221 (6)

Dominion Diagnostics, LLC Healthcare services (23)

Subordinated Term Loan, 11.00% cash 1.00% PIK due 10/18/2019 20,273 14,281 2,890 (20)(21)

First Lien Term Loan, PRIME+4.00% cash due 4/8/2019 9.00 % 45,691 45,691 45,691 (6)(20)

First Lien Revolver, PRIME+4.00% cash due 4/8/2019 9.00 % 2,090 2,090 2,090 (6)(20)

62,062 50,671

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Dodge Data & Analytics LLC

Data processing & outsourced services

500,000 Class A Common Units in Skyline Data, News and Analytics LLC

Dominion Diagnostics, LLC

Healthcare services

Subordinated Term Loan, 11% cash 1% PIK due 10/18/2019

First Lien Term Loan, LIBOR+5% (1% floor) cash due 4/8/2019

First Lien Revolver, LIBOR+5% (1% floor) cash due 4/8/2019

Eagleview Technology Corporation

Application software

Second Lien Term Loan, LIBOR+7.5% (1% Floor) cash due 8/14/2026

EHR Canada, LLC

First Lien Term Loan, LIBOR+8% (1% Floor) cash due 9/28/2020

EOS Fitness Opco Holdings, LLC

Leisure facilities

First Lien Term Loan, LIBOR+8.25% (0.75% floor) cash due 12/30/2019

First Lien Revolver, LIBOR+8.25% (0.75% floor) cash due 12/30/2019

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

The Dun & Bradstreet Corporation Research & consulting services

First Lien Term Loan, LIBOR+5.00% cash due 2/6/2026 7.05 % $ 10,000 $ 9,817 $ 10,074 (6)

Fixed Rate Bond 6.875% cash due 8/15/2026 5,000 5,000 5,459

14,817 15,533

Eagleview Technology Corporation Application software

Second Lien Term Loan, LIBOR+7.50% cash due 8/14/2026 9.55 % 12,000 11,880 11,520 (6)(20)

11,880 11,520

EHR Canada, LLC Food retail

First Lien Term Loan, LIBOR+8.00% cash due 9/28/2020 10.10 % 14,611 14,473 14,903 (6)(20)

14,473 14,903

EOS Fitness Opco Holdings, LLC Leisure facilities

487.5 Class A Preferred Units, 12% 488 855 (20)

12,500 Class B Common Units — 934 (20)

Research & consulting services

Second Lien Term Loan, LIBOR+7.5% (0% floor) cash due 5/1/2026

Equitrans Midstream Corp.

Oil & gas storage & transportation

First Lien Term Loan, LIBOR+4.50% cash due 1/31/2024 6.55 % 11,910 11,603 11,926 (6)(11)

11,603 11,926

ExamSoft Worldwide, Inc.

1 unchanged sentence

180,707 Class C Units in ExamSoft Investor LLC 181 — (20)

Garretson Firm Resolution Group, Inc.

Diversified support services

First Lien Revolver, PRIME+5.5% cash due 5/22/2020

4,950,000 Preferred Units in GRG Holdings, LP, 8%

50,000 Common Units in GRG Holdings, LP

Gentiva Health Services, Inc.

Healthcare services

GI Chill Acquisition LLC Managed healthcare

First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025 6.10 % 17,820 17,731 17,775 (6)(20)

Second Lien Term Loan, LIBOR+7.50% cash due 8/6/2026 9.60 % 10,000 9,914 10,000 (6)(20)

GI Chill Acquisition LLC

Managed healthcare

27,645 27,775

GKD Index Partners, LLC Specialized finance

First Lien Term Loan, LIBOR+7.25% cash due 6/29/2023 9.35 % 22,402 22,235 22,108 (6)(20)

First Lien Revolver, LIBOR+7.25% cash due 6/29/2023 — (9) (15) (6)(19)(20)

22,226 22,093

Interactive media & services

Second Lien Term Loan, LIBOR+7.50% cash due 10/12/2026 9.54 % 22,222 21,805 22,500 (6)(20)

GKD Index Partners, LLC

Specialized finance

First Lien Term Loan, LIBOR+7.25% (1% Floor) cash due 6/29/2023

First Lien Revolver, LIBOR+7.25% (1% Floor) cash due 6/29/2023

GOBP Holdings Inc.

Hypermarkets & super centers

Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 10/21/2022

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2018

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Golden State Medical Supply, Inc.

Pharmaceuticals

Mezzanine Term Loan, 10% cash 2.5% PIK due 4/24/2021

HC2 Holdings Inc.

Multi-sector holdings

Fixed Rate Bond 11% cash due 12/1/2019

21,805 22,500

Guidehouse LLP Research & consulting services

Second Lien Term Loan, LIBOR+7.50% cash due 5/1/2026 9.54 % 20,000 19,917 19,750 (6)

19,917 19,750

HealthEdge Software, Inc.

1 unchanged sentence

482,453 Series A-3 Preferred Stock Warrants (exercise price $1.450918) expiration date 9/30/2023 213 757 (20)

I Drive Safely, LLC

Education services

I Drive Safely, LLC Education services

125,079 Class A Common Units of IDS Investments, LLC 1,000 200 (20)

IBG Borrower LLC

Apparel, accessories & luxury goods

First Lien Term Loan, LIBOR+7% (1% floor) cash due 8/2/2022

Application software

First Lien Term Loan, LIBOR+6.5% (1% Floor) cash due 9/12/2024

First Lien Revolver, LIBOR+6.5% (1% Floor) cash due 9/12/2024

InMotion Entertainment Group, LLC

Consumer electronics

First Lien Term Loan, LIBOR+7.25% (1.25% floor) cash due 10/1/2021

Letter of Credit 6.25% cash due 10/1/2021

First Lien Revolver, LIBOR+6.75% (1.25% floor) cash due 10/1/2021

CapEx Line, LIBOR+7.75% (1.25% floor) cash due 10/1/2021

1,000,000 Class A Units in InMotion Entertainment Holdings, LLC

Integral Development Corporation

Other diversified financial services

1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024

Internet Pipeline, Inc.

Internet services & infrastructure

Incremental First Lien Term Loan, LIBOR+4.75% (1% floor) cash due 8/4/2022

Janrain, Inc.

IBG Borrower LLC Apparel, accessories & luxury goods

First Lien Term Loan, LIBOR+7.00% cash due 8/2/2022 9.13 % 14,209 13,027 13,286 (6)(20)

13,027 13,286

Application software

218,008 Common Stock Warrants (exercise price $1.3761) expiration date 12/5/2024

Jones Energy, Inc.

Oil & gas exploration & production

Fixed Rate Bond 9.25% cash due 3/15/2023

Kason Corporation

Industrial machinery

Mezzanine Term Loan, 11.5% cash 1.75% PIK due 10/28/2019

498.6 Class A Preferred Units in Kason Investment, LLC, 8%

5,540 Class A Common Units in Kason Investment, LLC

First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024 8.56 % 16,718 16,436 16,438 (6)(20)

First Lien Revolver, LIBOR+6.50% cash due 9/12/2024 — (15) (15) (6)(19)(20)

16,421 16,423

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Kellermeyer Bergensons Services, LLC

Environmental & facilities services

Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 4/29/2022

L Squared Capital Partners LLC

Multi-sector holdings

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Integral Development Corporation Other diversified financial services

1,078,284 Common Stock Warrants (exercise price $0.9274) expiration date 7/10/2024 $ 113 $ — (20)

Kellermeyer Bergensons Services, LLC Environmental & facilities services

Second Lien Term Loan, LIBOR+8.50% cash due 4/29/2022 10.77 % $ 6,105 5,940 5,937 (6)(20)

L Squared Capital Partners LLC Multi-sector holdings

2.00% limited partnership interest 864 2,237 (11)(16)

1 unchanged sentence

Healthcare distributors

First Lien Term Loan, LIBOR+4.75% (1% floor) cash due 8/29/2022

First Lien Term Loan, LIBOR+4.75% cash due 8/29/2022 7.01 % 19,892 19,586 18,583 (6)

19,586 18,583

Lannett Company, Inc.

Pharmaceuticals

First Lien Term Loan, LIBOR+4.75% (1% Floor) cash due 11/25/2020

First Lien Term Loan, LIBOR+5.00% cash due 11/25/2020 7.04 % 762 762 759 (6)(11)

Lift Brands Holdings, Inc.

1 unchanged sentence

2,000,000 Class A Common Units in Snap Investments, LLC 1,399 3,020 (20)

Long's Drugs Incorporated

Pharmaceuticals

Lightbox Intermediate, L.P.

Real estate services

First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026 7.05 % 39,900 39,332 39,501 (6)(20)

39,332 39,501

Long's Drugs Incorporated Pharmaceuticals

50 Series A Preferred Shares in Long's Drugs Incorporated 385 924 (20)

3 unchanged sentences

Second Lien Term Loan, LIBOR+6.75% cash due 9/6/2026 8.79 % 9,000 9,000 8,246 (6)

Lytx Holdings, LLC

Research & consulting services

Lytx Holdings, LLC Research & consulting services

3,500 Class B Units — 2,053 (20)

Maravai Intermediate Holdings, LLC

Biotechnology

Maravai Intermediate Holdings, LLC Biotechnology

First Lien Term Loan, LIBOR+4.25% cash due 8/2/2025 6.31 % 11,880 11,761 11,813 (6)(20)

Maverick Healthcare Group, LLC

Healthcare equipment

First Lien Term Loan, LIBOR+7.5% cash (1.75% floor) cash due 3/15/2019

First Lien Term Loan, LIBOR+11% cash (1.75% floor) cash due 3/15/2019

CapEx Line, LIBOR+7.75% (1.75% floor) cash due 3/15/2019

11,761 11,813

Mayfield Agency Borrower Inc.

Property & casualty insurance

First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 2/28/2025

Second Lien Term Loan, LIBOR+8.5% (1% floor) cash due 3/2/2026

Systems software

First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 9/30/2024

Second Lien Term Loan LIBOR+8.5% (1% floor) cash due 9/29/2025

First Lien Term Loan, LIBOR+4.50% cash due 2/28/2025 6.54 % 15,892 15,630 15,481 (6)

Second Lien Term Loan, LIBOR+8.50% cash due 3/2/2026 10.54 % 35,925 35,492 36,285 (6)(20)

51,122 51,766

McAfee, LLC Systems software

First Lien Term Loan, LIBOR+3.75% cash due 9/30/2024 5.79 % 10,957 10,884 10,995 (6)

Second Lien Term Loan, LIBOR+8.50% cash due 9/29/2025 10.54 % 7,000 7,034 7,093 (6)

17,918 18,088

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

McDermott Technology (Americas), Inc.

Oil & gas equipment services

First Lien Term Loan, LIBOR+5% (1% floor) cash due 5/12/2025

MHE Intermediate Holdings, LLC

Diversified support services

First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/8/2024

Ministry Brands, LLC

Application software

Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023

Second Lien Delayed Draw Term Loan, LIBOR+9.25% (1% floor) cash due 6/2/2023

First Lien Revolver, PRIME+4% (1% floor) cash due 12/2/2022

Personal products

First Lien Term Loan, LIBOR+6% (1% floor) cash due 2/10/2023

Natural Resource Partners LP

Coal & consumable fuels

Fixed Rate Bond 10.5% cash due 3/15/2022

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

MHE Intermediate Holdings, LLC Diversified support services

First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024 7.10 % $ 2,932 $ 2,913 $ 2,874 (6)(20)

Mindbody, Inc.

Internet services & infrastructure

First Lien Term Loan, LIBOR+7.00% cash due 2/14/2025 9.06 % 28,952 28,434 28,402 (6)(20)

First Lien Revolver, LIBOR+7.00% cash due 2/15/2025 — (55) (58) (6)(19)(20)

28,379 28,344

Ministry Brands, LLC Application software

Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023 11.34 % 7,056 6,997 7,056 (6)(20)

Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 6/2/2023 11.34 % 1,944 1,927 1,944 (6)(20)

First Lien Revolver, LIBOR+5.00% cash due 12/2/2022 7.04 % 200 191 200 (6)(19)(20)

Navicure, Inc.

Healthcare technology

Second Lien Term Loan, LIBOR+7.5% (1% floor) cash due 10/31/2025

Numericable SFR SA

Integrated telecommunication services

Second Lien Term Loan, LIBOR+7.50% cash due 10/31/2025 9.54 % 14,500 14,389 14,573 (6)(20)

14,389 14,573

Numericable SFR SA Integrated telecommunication services

Fixed Rate Bond, 7.38% cash due 5/1/2026 5,000 5,104 5,380 (11)

OmniSYS Acquisition Corporation

Diversified support services

OmniSYS Acquisition Corporation Diversified support services

100,000 Common Units in OSYS Holdings, LLC 1,000 750 (20)

Integrated telecommunication services

Second Lien Term Loan, LIBOR+10.5% (1% floor) cash due 2/10/2025

Onvoy, LLC Integrated telecommunication services

Second Lien Term Loan, LIBOR+10.50% cash due 2/10/2025 12.54 % 16,750 16,750 13,187 (6)(20)

19,666.67 Class A Units in GTCR Onvoy Holdings, LLC 1,967 — (20)

13,664.73 Series 3 Class B Units in GTCR Onvoy Holdings, LLC — — (20)

18,717 13,187

P2 Upstream Acquisition Co.

Application software

First Lien Revolver, LIBOR+4% (1% floor) cash due 11/1/2018

Pingora MSR Opportunity Fund I-A, LP

Thrift & mortgage finance

First Lien Term Loan, LIBOR+4.00% cash due 10/30/2020 6.19 % 2,976 2,936 2,950 (6)

First Lien Revolver, LIBOR+4.00% cash due 2/1/2020 — — (79) (6)(19)

PaySimple, Inc.

Data processing & outsourced services

First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025 7.55 % 37,750 37,004 37,184 (6)(20)

First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 8/23/2025 — (242) (184) (6)(19)(20)

36,762 37,000

Pingora MSR Opportunity Fund I-A, LP Thrift & mortgage finance

1.86% limited partnership interest 1,217 691 (11)(16)(19)

9 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

ProFrac Services, LLC

Industrial machinery

First Lien Term Loan, LIBOR+5.75% (1% Floor) cash due 9/15/2023

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Project Boost Purchaser, LLC Application software

First Lien Term Loan, LIBOR+3.50% cash due 6/1/2026 5.54 % $ 7,000 $ 6,930 $ 6,964 (6)

Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027 10.14 % 3,750 3,750 3,750 (6)(20)

10,680 10,714

ProFrac Services, LLC Industrial machinery

First Lien Term Loan, LIBOR+6.25% cash due 9/15/2023 8.66 % 17,192 17,055 16,848 (6)(20)

17,055 16,848

QuorumLabs, Inc.

1 unchanged sentence

64,887,669 Junior-2 Preferred Stock 375 — (20)

Refac Optical Group

Specialty stores

First Lien Term Loan, LIBOR+8% cash due 1/9/2019

First Lien Term Loan, LIBOR+9% cash 1.75% PIK due 1/9/2019

First Lien Term Loan, 12.5% cash due 1/9/2019 (22)

First Lien Revolver, LIBOR+8% cash due 1/9/2019 (13)(22)

Refac Optical Group Specialty stores

1,550.9435 Shares of Common Stock in Refac Holdings, Inc.

550.9435 Shares of Series A-2 Preferred Stock in Refac Holdings, Inc., 10%

1,000 Shares of Series A Preferred Stock Units in Refac Holdings, Inc., 10%

550.9435 Series A-2 Preferred Stock in Refac Holdings, Inc., 10% 305 — (20)

1,000 Series A-1 Preferred Stock in Refac Holdings, Inc., 10% 999 — (20)

Salient CRGT, Inc.

Aerospace & defense

First Lien Term Loan, LIBOR+5.75% (1% floor) cash due 2/28/2022

First Lien Term Loan, LIBOR+6.00% cash due 2/28/2022 8.05 % 3,086 3,056 2,932 (6)(20)

Scilex Pharmaceuticals Inc.

1 unchanged sentence

Fixed Rate Zero Coupon Bond due 8/15/2026 15,879 11,146 11,353 (20)

Sequa Mezzanine Holdings, LLC

Aerospace & defense

First Lien Term Loan, LIBOR+5% (1% Floor) cash due 11/28/2021

Second Lien Term Loan, LIBOR+9% (1% Floor) cash due 4/28/2022

11,146 11,353

ShareThis, Inc.

1 unchanged sentence

345,452 Series C Preferred Stock Warrants (exercise price $3.0395) expiration date 3/4/2024 367 2 (20)

Swordfish Merger Sub LLC

Auto parts & equipment

Second Lien Term Loan, LIBOR+6.75% (1% floor) cash due 2/2/2026

TerSera Therapeutics, LLC

Pharmaceuticals

Second Lien Term Loan, LIBOR+9.25% (1% floor) cash due 3/30/2024

Second Lien Incremental Term loan, LIBOR+9.25% cash due 3/30/2024

Second Lien Incremental Delayed Draw Term Loan, LIBOR+9.25% cash due 12/31/2018

Sorrento Therapeutics, Inc.

Biotechnology

First Lien Term Loan, LIBOR+7.00% cash due 11/7/2023 9.13 % 30,000 28,132 29,250 (6)(11)(20)

First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 11/7/2023 (62) (69) (6)(11)(19)(20)

Stock Warrants Strike (exercise price $3.28) expiration date 5/7/2029 1,750 1,667 (11)(20)

Stock Warrants Strike (exercise price $3.94) expiration date 11/3/2029 — 320 (11)(20)

29,820 31,168

Swordfish Merger Sub LLC Auto parts & equipment

Second Lien Term Loan, LIBOR+6.75% cash due 2/2/2026 8.79 % 12,500 12,450 12,135 (6)(20)

12,450 12,135

TerSera Therapeutics, LLC Pharmaceuticals

Second Lien Term Loan, LIBOR+9.25% cash due 3/30/2024 11.35 % 25,463 25,025 25,192 (6)(20)

Second Lien Delayed Draw Term Loan, LIBOR+9.25% cash due 12/31/2020 — (45) (6)(19)(20)

668,879 Common Units of TerSera Holdings LLC 1,731 2,629 (20)

26,756 27,776

TigerText, Inc.

Application software

299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/2024 60 560 (20)

Transact Holdings Inc.

Application software

First Lien Term Loan, LIBOR+4.75% cash due 4/30/2026 7.01 % 7,000 6,895 6,965 (6)

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Data processing & outsourced services

First Lien Term Loan, LIBOR+7.5% (1% floor) cash 2% PIK due 10/11/2020

First Lien Revolver, LIBOR+7.5% (1% floor) cash due 10/11/2020

2,000,000 Units in T5 Investment Vehicle, LLC

TigerText, Inc.

Application software

299,110 Series B Preferred Stock Warrants (exercise price $1.3373) expiration date 12/8/2024

TravelCLICK, Inc.

Data processing & outsourced services

Second Lien Term Loan, LIBOR+7.75% (1% floor) cash due 11/6/2021

Tribe Buyer LLC

Human resource & employment services

First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 2/16/2024

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Tribe Buyer LLC Human resource & employment services

First Lien Term Loan, LIBOR+4.50% cash due 2/16/2024 6.54 % $ 830 $ 830 $ 775 (6)(20)

Truck Hero, Inc.

Auto parts & equipment

Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 4/21/2025

Trading companies & distributors

First Lien Term Loan, LIBOR+5.5% (1% floor) cash due 4/18/2023

Second Lien Term Loan, LIBOR+8.25% cash due 4/21/2025 10.29 % 21,500 21,191 20,103 (6)(20)

21,191 20,103

Uber Technologies, Inc.

Application software

First Lien Term Loan, LIBOR+4.00% cash due 4/4/2025 6.03 % 5,689 5,652 5,667 (6)

Uniti Group LP Specialized REITs

First Lien Term Loan, LIBOR+5.00% cash due 10/24/2022 7.04 % 8,403 8,264 8,213 (6)(11)

UOS, LLC Trading companies & distributors

First Lien Term Loan, LIBOR+5.50% cash due 4/18/2023 7.54 % 10,242 10,357 10,370 (6)

10,357 10,370

Veritas US Inc.

Application software

First Lien Term Loan, LIBOR+4.5% (1% floor) cash due 1/27/2023

Verra Mobility, Corp.

Data processing & outsourced services

Second Lien Term Loan, LIBOR+7.75% cash due 2/27/2026

First Lien Term Loan, LIBOR+4.50% cash due 1/27/2023 6.60 % 34,200 34,468 32,413 (6)

34,468 32,413

Verscend Holding Corp.

2 unchanged sentences

Fixed Rate Bond, 9.75% cash due 8/15/2026 12,000 12,022 12,823

36,655 37,702

Vertex Aerospace Services Corp.

1 unchanged sentence

First Lien Term Loan, LIBOR+4.50% cash due 6/29/2025 6.54 % 15,800 15,735 15,869 (6)

Vine Oil & Gas LP

Oil & gas exploration & production

First Lien Term Loan, LIBOR+6.875% (1% floor) cash due 11/25/2021

15,735 15,869

Vitalyst Holdings, Inc.

IT consulting & other services

675 Series A Preferred Units of PCH Support Holdings, Inc., 10%

7,500 Class A Common Stock Units of PCH Support Holdings, Inc.

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2018

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(5)(9)(14)

Cash Interest Rate (13)

Principal (8)

Weatherford International

Oil & gas equipment services

Fixed Rate Bond 9.875% cash due 2/15/2024

WeddingWire, Inc.

Internet services & infrastructure

Windstream Services, LLC

Integrated telecommunication services

675 Series A Preferred Stock Units 675 440 (20)

7,500 Class A Common Stock Units 75 — (20)

Windstream Services, LLC Integrated telecommunication services

Fixed Rate Bond, 8.63% cash due 10/31/2025 5,000 4,863 5,113 (11)

WP CPP Holdings, LLC

Aerospace & defense

Second Lien Term Loan, LIBOR+7.75% (1% floor) cash due 4/30/2026

WP CPP Holdings, LLC Aerospace & defense

Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026 10.01 % 15,000 14,874 14,937 (6)

14,874 14,937

xMatters, Inc.

1 unchanged sentence

600,000 Common Stock Warrants (exercise price $0.593333) expiration date 2/26/2025 709 273 (20)

Yeti Acquisition, LLC

Yeti Holdings, Inc.

Leisure products

2,000,000 Common Stock Units of Yeti Holdings, Inc.

537,629 Shares Yeti Holdings, Inc.

Common Stock — 15,054

Specialty chemicals

Second Lien Term Loan, LIBOR+8.25% (1% floor) cash due 8/11/2025

First Lien Term Loan, LIBOR+4.00% (1% floor) cash due 8/12/2024

Zephyr Bidco Limited

Specialized finance

Second Lien Term Loan, UK LIBOR+7.50% (0% floor) cash due 7/23/2026

Second Lien Term Loan, LIBOR+8.25% cash due 8/11/2025 10.35 % 30,000 29,889 21,950 (6)(20)

First Lien Term Loan, LIBOR+4.00% cash due 8/12/2024 6.04 % 1,975 1,899 1,564 (6)

31,788 23,514

Zephyr Bidco Limited Specialized finance

Second Lien Term Loan, UK LIBOR+7.50% cash due 7/23/2026 8.21 % £ 18,000 23,632 22,006 (6)(11)

23,632 22,006

Oaktree Specialty Lending Corporation

Consolidated Schedule of Investments

September 30, 2019

(dollar amounts in thousands)

Portfolio Company/Type of Investment (1)(2)(3)(4)(5) Cash Interest Rate (6) Industry Principal (7) Cost Fair Value Notes

Total Non-Control/Non-Affiliate Investments (131.1% of net assets) $ 1,280,310 $ 1,219,694

Total Portfolio Investments (154.5% of net assets) $ 1,513,014 $ 1,438,042

Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents

JP Morgan Prime Money Market Fund, Institutional Shares

$ 9,611 $ 9,611

Other cash accounts

Total Cash and Cash Equivalents and Restricted Cash (1.6% of net assets)

Total Portfolio Investments, Cash and Cash Equivalents and Restricted Cash (175.4% of net assets)

Derivative Instrument

Notional Amount to be Purchased

Notional Amount to be Sold

Maturity Date

Cumulative Unrealized Appreciation /(Depreciation)

Foreign currency forward contract

JPMorgan Chase Bank, N.A.

All debt investments are income producing unless otherwise noted.

All equity investments are non-income producing unless otherwise noted.

See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.

Control Investments generally are defined by the Investment Company Act, as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.

Total Cash and Cash Equivalents (1.7% of net assets) $ 15,406 $ 15,406

Total Portfolio Investments and Cash and Cash Equivalents (156.2% of net assets) $ 1,528,420 $ 1,453,448

Derivative Instrument Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Counterparty Cumulative Unrealized Appreciation /(Depreciation)

Foreign currency forward contract $ 22,161 £ 17,910 10/15/2019 JPMorgan Chase Bank, N.A.

Foreign currency forward contract $ 19,193 € 17,150 11/29/2019 JPMorgan Chase Bank, N.A.

Oaktree Specialty Lending Corporation

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(dollar amounts in thousands)

(1) All debt investments are income producing unless otherwise noted.

All equity investments are non-income producing unless otherwise noted.

(2) See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition by geographic region.

(3) Equity ownership may be held in shares or units of companies related to the portfolio companies.

Income producing through payment of dividends or distributions.

Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.

Principal includes accumulated PIK interest and is net of repayments.

“£” signifies the investment is denominated in British Pounds.

"€" signifies the investment is denominated in Euros.

All other investments are denominated in U.S.

(4) Interest rates may be adjusted from period to period on certain term loans and revolvers.

Investment has undrawn commitments.

Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis.

A negative fair value may result from the unfunded commitment being valued below par.

Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act.

Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

As of September 30, 2018 , qualifying assets represented 73.4% of the Company's total assets and non-qualifying assets represented 26.6% of the Company's total assets.

The sale of a portion of this loan does not qualify for true sale accounting under ASC 860, and therefore, the entire debt investment remains in the Consolidated Schedule of Investments.

Accordingly, the fair value of the Company's debt investments as of September 30, 2018 includes $9.7 million related to the Company's secured borrowings.

(See Note 14 in the accompanying notes to the Consolidated Financial Statements.)

(5) With the exception of investments held by the Company’s wholly-owned subsidiaries that each formerly held a license from the SBA to operate as an SBIC, each of the Company's investments is pledged as collateral under the Credit Facility (as defined in Note 6 to the accompanying notes to the Consolidated Financial Statements).

(6) The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option.

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dollars unless otherwise noted.

As of September 30, 2018 , the reference rates for our variable rate loans were the 30-day LIBOR at 2.24%, 60-day LIBOR at 2.29%, the 90-day LIBOR at 2.39%, the 180-day LIBOR at 2.59%, the PRIME at 5.25%, the 30-day UK LIBOR at 0.72% and the 30-day EURIBOR at (0.40)%.

With the exception of investments held by the Company’s wholly-owned subsidiaries that each formerly held a license from the SBA to operate as a SBIC, each of the Company's investments is pledged as collateral under its credit facility.

As of September 30, 2019, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 2.04%, the 60-day LIBOR at 2.09%, the 90-day LIBOR at 2.10%, the 180-day LIBOR at 2.06%, the PRIME at 5.00%, the 30-day UK LIBOR at 0.71% and the 30-day EURIBOR at (0.51)%.

Most loans include an interest floor, which generally ranges from 0% to 1%.

(7) Principal includes accumulated PIK interest and is net of repayments, if any.

“£” signifies the investment is denominated in British Pounds.

"€" signifies the investment is denominated in Euros.

All other investments are denominated in U.S.

(8) Control Investments generally are defined by the Investment Company Act, as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(9) As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement).

See Schedule 12-14 in this Form 10-K for the year ended September 30, 2018 for transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

(10) First Star Speir Aviation 1 Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy.

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Accordingly, the debt and equity investments in the wholly-owned holding company are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.

(11) Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act.

As of September 30, 2019, qualifying assets represented 75.0% of the Company's total assets and non-qualifying assets represented 25.0% of the Company's total assets.

(12) Income producing through payment of dividends or distributions.

(13) PIK interest income for this investment accrues at an annualized rate of 15%, however, the PIK interest is not contractually capitalized on the investment.

As a result, the principal amount of the investment does not increase over time for accumulated PIK interest.

As of September 30, 2019, the accumulated PIK interest balance for each of the A notes and the B notes was $1.8 million.

The fair value of this investment is inclusive of PIK.

(14) See Note 3 in the accompanying notes to the Consolidated Financial Statements for portfolio composition.

The Class A Mezzanine Secured Deferrable Floating Rate Notes bear interest at a rate of LIBOR plus the applicable margin as defined in the indenture.

The Class A Mezzanine Secured Deferrable Floating Rate Notes and Class B Mezzanine Secured Deferrable Fixed Rate Notes are collectively referred to as the "mezzanine notes".

During the year ended September 30, 2018 , the Company exited its investments in WeddingWire, Inc.

("WeddingWire") in exchange for cash and the right to receive contingent payments in the future based on the performance of WeddingWire, which is referred to as an "earn-out" in the consolidated schedule of investments.

Payments on the Company's investment in Maverick Healthcare are currently past due.

In May 2017, the Company entered into a forbearance agreement with Maverick Healthcare in which the Company has temporarily agreed not to take action against Maverick Healthcare.

As of September 30, 2018 , the forbearance agreement, as amended in June 2018, extended to March 15, 2019.

As of September 30, 2018 , these investments are categorized as Level 2 within the fair value hierarchy established by ASC 820.

All other investments are categorized as Level 3 as of September 30, 2018 and were using significant unobservable inputs.

(15) On December 28, 2018, the mezzanine notes issued by SLF Repack Issuer 2016, LLC, a wholly-owned, special purpose issuer subsidiary of Senior Loan Fund JV I, LLC ("SLF JV I"), were redeemed and the Company purchased subordinated notes and LLC equity interests issued by SLF JV I.

(16) This investment was valued using net asset value as a practical expedient for fair value.

Consistent with ASC 820, these investments are excluded from the hierarchical levels.

(17) Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.

(18) Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.

(19) Investment has undrawn commitments.

Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis.

A negative fair value may result from the unfunded commitment being valued below par.

(20) As of September 30, 2019, these investments were categorized as Level 3 within the fair value hierarchy established by ASC 820.

(21) This investment was on cash non-accrual status as of September 30, 2019.

Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

This investment was on PIK non-accrual status as of September 30, 2018 .

PIK non-accrual status is inclusive of other non-cash income, where applicable.

This investment was valued using net asset value as a practical expedient for fair value.

Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.

AdVenture Interactive, Corp.

completed a reorganization in which it separated its marketing services business from its online program management business.

In connection with the reorganization, FS AVI Holdco LLC was formed as a separate entity and is the parent company to

Oaktree Specialty Lending Corporation

2 unchanged sentences

(dollar amounts in thousands)

Keypath Education, Inc., which represents the former marketing services business, and the Company's first lien term loan and revolver with AdVenture Interactive, Corp.

were assigned to Keypath Education, Inc.

Subsequent to the reorganization, AdVenture Interactive, Corp.

holds preferred units in Keypath Education Holdings, LLC, which conducts the online program management business.

Subsequent to the reorganization, the Company is not deemed to control Keypath Education Holdings, LLC under the Investment Company Act.

This investment was reclassified from Control investments to Non-Control/Non-Affiliate Investments during the year ended September 30, 2018 .

Payments on the Company's investment in Refac Optical Group are currently past due.

In October 2018, the Company entered into a forbearance agreement with Refac Optical Group in which the Company has temporarily agreed not to take action against Refac Optical Group.

As of September 30, 2018 , the forbearance agreement extended to January 9, 2019.

This investment was renamed PLATO Learning Inc.

as of September 30, 2018 .

Prior to September 30, 2018 , this investment was previously named Edmentum, Inc.

During the three months ended December 31, 2018, the Company's shares in Yeti Holdings, Inc.

were subject to a 0.397 reverse share split.

Subsequent to the reverse split, the Company held 794,000 shares in Yeti Holdings, Inc.

(22) This investment was on PIK non-accrual status as of September 30, 2019.

PIK non-accrual status is inclusive of other non-cash income, where applicable.

(23) Payments on this investment were past due as of September 30, 2019.

See notes to Consolidated Financial Statements.

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Oaktree Specialty Lending Corporation (together with its consolidated subsidiaries, the "Company") is a specialty finance company that looks to provide customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets.

The Company was formed in late 2007 and operates as a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act.

The Company has qualified and elected to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"), for tax purposes.

The Company seeks to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds, preferred equity and certain equity co-investments.

The Company's investment objective is to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds, preferred equity and certain equity co-investments.

The Company may also seek to generate capital appreciation and income through secondary investments at discounts to par in either private or syndicated transactions.

As of October 17, 2017, the Company is externally managed by Oaktree Capital Management, L.P.

(“Oaktree”), a subsidiary of Oaktree Capital Group, LLC (“OCG”), pursuant to an investment advisory agreement between the Company and Oaktree, as amended from time to time (the “Investment Advisory Agreement”).

Oaktree Fund Administration, LLC (“Oaktree Administrator”), a subsidiary of Oaktree, provides certain administrative and other services necessary for the Company to operate pursuant to an administration agreement between the Company and Oaktree Administrator, as amended from time to time (the “Administration Agreement”).

The Company is externally managed by Oaktree Fund Advisors, LLC (“Oaktree”), a subsidiary of Oaktree Capital Group, LLC (“OCG”), pursuant to an investment advisory agreement between the Company and Oaktree (the “Investment Advisory Agreement”).

Oaktree is an affiliate of Oaktree Capital Management, L.P.

("OCM"), the Company's external investment adviser from October 17, 2017 through May 3, 2020 and also a subsidiary of OCG.

Oaktree Fund Administration, LLC (“Oaktree Administrator”), a subsidiary of OCM, provides certain administrative and other services necessary for the Company to operate pursuant to an administration agreement between the Company and Oaktree Administrator (the “Administration Agreement”).

In 2019, Brookfield Asset Management Inc.

acquired a majority economic interest in OCG.

("Brookfield") acquired a majority economic interest in OCG.

OCG operates as an independent business within Brookfield, with its own product offerings and investment, marketing and support teams.

Prior to October 17, 2017, the Company was externally managed by Fifth Street Management LLC (the "Former Adviser”), an indirect, partially-owned subsidiary of Fifth Street Asset Management Inc.

(“FSAM”), and was named Fifth Street Finance Corp.

FSC CT LLC (the "Former Administrator"), a subsidiary of the Former Adviser, also provided certain administrative and other services necessary for the Company to operate pursuant to an administration agreement (the "Former Administration Agreement").

Significant Accounting Policies

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All intercompany balances and transactions have been eliminated.

Certain prior-period financial information has been reclassified to conform to current period presentation.

The Company is an investment company following the accounting and reporting guidance in ASC Topic 946, Financial Services - Investment Companies ("ASC 946").

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The assets of certain of the consolidated subsidiaries are not directly available to satisfy the claims of the creditors of Oaktree Specialty Lending Corporation or any of its other subsidiaries.

As of September 30, 2019 , the consolidated subsidiaries were Fifth Street Fund of Funds LLC ("Fund of Funds"), Fifth Street Mezzanine Partners IV, L.P.

("FSMP IV"), Fifth Street Mezzanine Partners V, L.P.

("FSMP V" and together with FSMP IV, the "Excluded Subsidiaries"), FSMP IV GP, LLC, FSMP V GP, LLC, OCSL SRNE, LLC, OCSL AB Blocker, LLC and FSFC Holdings, Inc.

("Holdings").

In addition, the Company consolidates various holding companies held in connection with its equity investments in certain portfolio investments.

As an investment company, portfolio investments held by the Company are not consolidated into the Consolidated Financial Statements but rather are included on the Statements of Assets and Liabilities as investments at fair value.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Fair Value Measurements:

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These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the investments or market and the investments' complexity.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Hierarchical levels, defined by ASC 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:

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(i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase prices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company's assets and (vii) offers from third parties to buy the portfolio company.

The Company may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

valuation date.

The Company may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date.

The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments.

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As debt investments held by the Company are substantially illiquid with no active transaction market, the Company depends on primary market data, including newly funded transactions and industry specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value.

Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.

These investments are generally not redeemable.

The Company estimates the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk free rate.

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• The Board of Directors discusses valuations and determines the fair value of each investment in the Company's portfolio.

The fair value of the Company's investments as of September 30, 2019 and 2018 was determined in good faith by the Board of Directors.

The fair value of the Company's investments as of September 30, 2020 and September 30, 2019 was determined in good faith by the Board of Directors.

The Board of Directors has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of the Company's portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and the Board of Directors may reasonably rely on that assistance.

However, the Board of Directors is responsible for the ultimate valuation of the portfolio investments at fair value as determined in good faith pursuant to the Company's valuation policy and a consistently applied valuation process.

With the exception of the line items entitled "deferred financing costs," "other assets," "deferred tax liability," "credit facility payable" and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statements of Assets and Liabilities.

The carrying value of the line items titled "interest, dividends and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable," "payable to syndication partners" and "payables from unsettled transactions" approximate fair value due to their short maturities.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period.

Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.

With the exception of the line items entitled "deferred financing costs," "deferred offering costs," "other assets," "deferred tax asset, net," "deferred tax liability," "credit facility payable" and "unsecured notes payable," which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statements of Assets and Liabilities.

The carrying value of the line items titled "interest, dividends and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "accounts payable, accrued expenses and other liabilities," "base management fee and incentive fee payable," "due to affiliate," "interest payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Foreign Currency Translation:

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The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held.

The Company’s investments in foreign securities may involve certain risks, including

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment.

The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment.

In addition, changes in the relationship of foreign currencies to the U.S.

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Investment Income:

Interest Income

Interest income, adjusted for accretion of original issue discount ("OID"), is recorded on an accrual basis to the extent that such amounts are expected to be collected.

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Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.

For the Company's secured borrowings, the interest earned on the entire loan balance is recorded within interest income and the interest earned by the buyer from the partial loan sales is recorded within interest expense in the Consolidated Statements of Operations.

For the Company's secured borrowings, the interest earned on the entire loan balance is recorded within interest income and the interest earned by the counterparty is recorded within interest expense in the Consolidated Statements of Operations.

PIK Interest Income

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To maintain its status as a RIC, certain income from PIK interest may be required to be distributed to the Company’s stockholders, even though the Company has not yet collected the cash and may never do so.

Oaktree may provide financial advisory services to portfolio companies and, in return, the Company may receive fees for capital structuring services.

These fees are generally nonrecurring and are recognized by the Company upon the investment closing date.

The Company may also receive additional fees in the ordinary course of business, including servicing, amendment and prepayment fees, which are classified as fee income and recognized as they are earned or services are rendered.

The Company may structure exit fees across certain of its portfolio investments to be received upon the future exit of those investments.

These fees are typically paid to the Company upon the earliest to occur of (i) a sale of the borrower or substantially all of

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

its assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs.

Oaktree or its affiliates may provide financial advisory services to portfolio companies and, in return, the Company may receive fees for capital structuring services.

These fees are generally nonrecurring and are recognized by the Company upon the investment closing date.

The Company has also structured exit fees across certain of its portfolio investments to be received upon the future exit of those investments.

These fees are typically paid to the Company upon the earliest to occur of (i) a sale of the borrower or substantially all of the assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs.

The receipt of such fees is contingent upon the occurrence of one of the events listed above for each of the investments.

1 unchanged sentence

Dividend Income

The Company generally recognizes dividend income on the ex-dividend date.

Distributions received from equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

Generally, the Company will not record distributions from equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution.

The Company generally recognizes dividend income on the ex-dividend date for public securities and the record date for private equity investments.

Distributions received from private equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

Generally, the Company will not record distributions from private equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution.

Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

Cash and Cash Equivalents and Restricted Cash:

Cash and cash equivalents and restricted cash consist of demand deposits and highly liquid investments with maturities of three months or less when acquired.

Cash and Cash Equivalents:

Cash and cash equivalents consist of demand deposits and highly liquid investments with maturities of three months or less when acquired.

The Company places its cash and cash equivalents and restricted cash with financial institutions and, at times, cash held in bank accounts may exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limit.

Cash and cash equivalents and restricted cash are included on the Company's Consolidated Schedule of Investments and cash equivalents are classified as Level 1 assets.

Restricted cash includes payments received on certain loans that are payable to syndication partners as of the reporting date in connection with the Company's role as administrative agent.

Cash and cash equivalents are included on the Company's Consolidated Schedule of Investments and cash equivalents are classified as Level 1 assets.

Due from Portfolio Companies:

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Deferred financing costs consist of fees and expenses paid in connection with the closing or amending of credit facilities and debt offerings.

Deferred financing costs in connection with credit facilities are capitalized as an asset when received.

Deferred financing costs in connection with all other debt arrangements are a direct deduction from the related debt liability at the time of payment.

Deferred financing costs in connection with credit facilities are capitalized as an asset when incurred.

Deferred financing costs in connection with all other debt arrangements are a direct deduction from the related debt liability when incurred.

Deferred financing costs are amortized using the effective interest method over the term of the respective debt arrangement.

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Upon early termination or modification of a credit facility, all or a portion of unamortized fees related to such facility may be accelerated into interest expense.

For extinguishments of the Company’s unsecured notes payable, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment.

Deferred Offering Costs:

Legal fees and other costs incurred in connection with the Company’s shelf registration statement are capitalized as deferred offering costs in the Consolidated Statements of Assets and Liabilities.

To the extent any such costs relate to equity offerings, these costs are charged as a reduction of capital upon utilization.

To the extent any such costs relate to debt offerings, these costs are treated as deferred financing costs and are amortized over the term of the respective debt arrangement.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

deferred offering costs that remain at the expiration of the shelf registration statement or when it becomes probable that an offering will not be completed are expensed.

Income Taxes:

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federal excise tax for calendar year 2020.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The Company holds certain portfolio investments through taxable subsidiaries, including Fund of Funds and Holdings.

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Federal and California, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Secured Borrowings:

The Company follows the guidance in ASC 860 when accounting for loan participations and other partial loan sales.

Such guidance provides accounting and reporting standards for transfers and servicing of financial assets and requires a participation or other partial loan sales to meet the definition of a "participating interest," as defined in the guidance, in order for sale treatment to be allowed.

Participations or other partial loan sales which do not meet the definition of a participating interest or which are not eligible for sale accounting remain on the Company's Consolidated Statements of Assets and Liabilities and the proceeds are recorded as a secured borrowing until the definition is met.

Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value.

As of September 30, 2019, the Company did not have any secured borrowing outstanding.

See Note 14 for additional information.

Payables to Syndication Partners:

The Company acts as administrative agent for certain loans it originates and then syndicates.

As administrative agent, the Company receives interest, principal and/or other payments from borrowers that are redistributed to syndication partners.

If not redistributed by the reporting date, such amounts are classified in restricted cash and a payable is recorded to syndication partners on the Consolidated Statements of Assets and Liabilities.

Fair Value Option:

The Company adopted certain principles under ASC Topic 825, Financial Instruments – Fair Value Option ("ASC 825"), and elected the fair value option for its secured borrowings.

The Company believes that by electing the fair value option for these financial instruments, it provides consistent measurement of the assets and liabilities which relate to the partial loan sales mentioned above.

Recent Accounting Pronouncements:

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), which requires that cash and cash equivalent balances in the statement of cash flows include restricted cash and restricted cash equivalent amounts, and therefore, changes in restricted cash and restricted cash equivalents be presented in the statement of cash flows.

As a result of the adoption of the new guidance, changes in restricted cash and restricted cash equivalents are no longer presented as separate activities in the statement of cash flows.

When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, ASU 2016-18 requires a reconciliation between the totals in the statement of cash flows and the related captions on

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting if certain criteria are met.

The guidance is effective from March 12, 2020 through December 31, 2022.

As of September 30, 2020, the guidance did not have a material impact on the Consolidated Financial Statements.

The SEC issued final rules that, among other things, amended the financial disclosure requirements of Regulation S-X for acquired and disposed businesses and the significance tests for a “significant subsidiary” as applicable to BDCs, and amended certain forms used by BDCs.

The amendments are intended to assist BDCs in making more meaningful determinations as to whether a subsidiary or an acquired or disposed entity is significant and improve the financial disclosure requirements

OAKTREE SPECIALTY LENDING CORPORATION

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(in thousands, except share and per share amounts, percentages and as otherwise indicated)

the balance sheet.

The new guidance was effective for fiscal years beginning after December 15, 2017, including interim periods therein.

The Company adopted the new guidance during the three months ended December 31, 2018.

The retrospective application of this new standard resulted in changes to the previously reported statements of cash flows as follows:

Year ended September 30, 2018

Year ended September 30, 2017

As Previously Reported

After Adoption of ASU 2016-18

As Previously Reported

After Adoption of ASU 2016-18

Net cash provided by operating activities

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which changes the fair value disclosure requirements.

The new guidance includes new, eliminated and modified fair value disclosures.

Among other requirements, the guidance requires disclosure of the range and weighted average of the significant unobservable inputs for Level 3 fair value measurements and the way it is calculated.

The guidance also eliminated the following disclosures:

(i) amount and reason for transfers between Level 1 and Level 2, (ii) policy for timing of transfers between levels of the fair value hierarchy and (iii) valuation processes for Level 3 fair value measurement.

The guidance is effective for all entities for interim and annual periods beginning after December 15, 2019.

Early adoption is permitted upon issuance of the guidance.

The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements.

applicable to acquisitions and dispositions of investment companies and BDCs.

The Company early adopted the updated rules for the year ended September 30, 2020 which did not result in any new significant subsidiaries being identified.

Portfolio Investments

As of September 30, 2019 , 154.5% of net assets at fair value, or $1.4 billion , was invested in 104 portfolio companies, including the Company's investment in subordinated notes and limited liability company ("LLC") equity interests in SLF JV I, which had a fair value of $96.3 million and $30.1 million , respectively.

As of September 30, 2020, 172.0% of net assets at fair value, or $1.6 billion, was invested in 113 portfolio companies, including $117.4 million in subordinated notes and limited liability company ("LLC") equity interests of SLF JV I, a joint venture through which the Company and Trinity Universal Insurance Company, a subsidiary of Kemper Corporation ("Kemper"), co-invest in senior secured loans of middle-market companies and other corporate debt securities.

As of September 30, 2020, 4.3% of net assets at fair value, or $39.1 million, was invested in cash and cash equivalents.

In comparison, as of September 30, 2018 , 173.8% of net assets at fair value, or $ 1.5 billion , was invested in 113 portfolio investments, including the Company's investment in Class A mezzanine secured deferrable floating rate notes, Class B mezzanine secured deferrable fixed rate notes and LLC equity interests in SLF JV I, which had a fair value of $99.8 million , $29.5 million and $0.0 million, respectively, and 1.6% of net assets at fair value, or $13.5 million , was invested in cash and cash equivalents (including restricted cash).

As of September 30, 2019 , 78.6% of the Company's portfolio at fair value consisted of senior secured debt investments and 12.3% consisted of subordinated notes, including debt investments in SLF JV I.

As of September 30, 2018 , 75.4% of the Company's portfolio at fair value consisted of senior secured debt investments and 19.6% consisted of subordinated notes, including debt investments in SLF JV I.

In comparison, as of September 30, 2019, 154.5% of net assets at fair value, or $1.4 billion, was invested in 104 portfolio investments, including $126.3 million in subordinated notes and LLC equity interests of SLF JV I, and 1.7% of net assets at fair value, or $15.4 million, was invested in cash and cash equivalents.

As of September 30, 2020, 84.1% of the Company's portfolio at fair value consisted of senior secured debt investments and 10.3% consisted of subordinated debt investments, including the debt investment in SLF JV I.

As of September 30, 2019, 78.6% of the Company's portfolio at fair value consisted of senior secured debt investments and 12.3% consisted of subordinated debt investments, including the debt investment in SLF JV I.

The Company also held equity investments in certain of its portfolio companies consisting of common stock, preferred stock, warrants, limited partnership interests or LLC equity interests.

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The composition of the Company's investments as of September 30, 2020 and September 30, 2019 at cost and fair value was as follows:

September 30, 2019

September 30, 2018

September 30, 2020 September 30, 2019

Cost Fair Value Cost Fair Value

Investments in debt securities $ 1,422,487 $ 1,388,605 $ 1,274,367 $ 1,212,174

Investments in equity securities 101,111 67,806 93,075 99,566

Debt investments in SLF JV I

Debt investment in SLF JV I 96,250 96,250 96,250 96,250

Equity investment in SLF JV I 49,322 21,190 49,322 30,052

Total $ 1,669,170 $ 1,573,851 $ 1,513,014 $ 1,438,042

The following table presents the composition of the Company's debt investments as of September 30, 2020 and September 30, 2019 at fixed rates and floating rates:

September 30, 2020 September 30, 2019

Fair Value % of Debt

Portfolio Fair Value % of Debt

Fixed rate debt securities $ 173,346 11.67 % $ 132,965 10.16 %

Floating rate debt securities, including the debt investment in SLF JV I 1,311,509 88.33 1,175,459 89.84

Total $ 1,484,855 100.00 % $ 1,308,424 100.00 %

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table presents the composition of the Company's debt investments as of September 30, 2019 and September 30, 2018 at fixed rates and floating rates:

September 30, 2019

September 30, 2018

Fixed rate debt securities, including debt investments in SLF JV I

Floating rate debt securities, including debt investments in SLF JV I

The following table presents the financial instruments carried at fair value as of September 30, 2020 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:

Measured at Net Asset Value (a)

Level 1 Level 2 Level 3 Measured at Net Asset Value (a) Total

Investments in debt securities (senior secured) $ — $ 418,806 $ 904,237 $ — $ 1,323,043

Investments in debt securities (subordinated, including debt investments in SLF JV I)

Investments in debt securities (subordinated, including the debt investment in SLF JV I) — 35,660 126,152 — 161,812

Investments in equity securities (preferred) — — 29,959 — 29,959

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Cash equivalents

35,248 — — — 35,248

Derivative assets

— 223 — — 223

Total assets at fair value

In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy.

$ 35,470 $ 454,689 $ 1,095,428 $ 23,735 $ 1,609,322

(a) In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy.

These investments are generally not redeemable.

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The following table presents the financial instruments carried at fair value as of September 30, 2019 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:

Measured at Net Asset Value (a)

Level 1 Level 2 Level 3 Measured at Net Asset Value (a) Total

Investments in debt securities (senior secured) $ — $ 477,542 $ 653,334 $ — $ 1,130,876

Investments in debt securities (subordinated, including debt investments in SLF JV I)

Investments in debt securities (subordinated, including the debt investment in SLF JV I) — 67,239 110,309 — 177,548

Investments in equity securities (preferred) — — 40,578 — 40,578

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Cash equivalents

9,611 — — — 9,611

Derivative assets

— 490 — — 490

Total assets at fair value

Secured borrowings

Total liabilities at fair value

These investments are generally not

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

$ 24,665 $ 545,271 $ 845,227 $ 32,980 $ 1,448,143

These investments are generally not redeemable.

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

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Transfers between levels are recognized at the beginning of the reporting period.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table provides a roll-forward in the changes in fair value from September 30, 2019 to September 30, 2020 for all investments for which the Company determined fair value using unobservable (Level 3) factors:

Senior Secured Debt Subordinated

Debt (including debt investment in SLF JV I) Preferred

Equity Common

Equity and Warrants Total

Fair value as of September 30, 2019 $ 653,334 $ 110,309 $ 40,578 $ 41,006 $ 845,227

Purchases 423,545 50,534 — 1,485 475,564

Sales and repayments (207,898) (40,630) (1,388) (13,838) (263,754)

Transfers in (a)(b) 67,939 5,113 — 19,229 92,281

Transfers out (a)(b) (33,625) (605) — — (34,230)

PIK interest income 7,568 — — — 7,568

Accretion of OID 6,042 2,856 — — 8,898

Net unrealized appreciation (depreciation) 15,944 12,917 (9,726) (14,981) 4,154

Net realized gains (losses) (28,612) (14,342) 495 2,179 (40,280)

Fair value as of September 30, 2020 $ 904,237 $ 126,152 $ 29,959 $ 35,080 $ 1,095,428

Net unrealized appreciation (depreciation) relating to Level 3 investments still held as of September 30, 2020 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the year ended September 30, 2020 $ (11,757) $ 1,777 $ (9,125) $ (17,277) $ (36,382)

(a) There were transfers into/out of Level 3 from/to Level 2 for certain investments during the year ended September 30, 2020 as a result of a change in the number of market quotes available and/or a change in market liquidity.

(b) There was a transfer from senior secured debt to common equity and warrants during the year ended September 30, 2020 as a result of an investment restructuring, in which $46.5 million of senior secured debt was exchanged for new senior secured debt of $27.9 million and common equity of $18.6 million.

There was also a transfer from subordinated debt to common equity and warrants during the year ended September 30, 2020 as a result of an investment restructuring, in which $0.6 million subordinated debt was exchanged for common equity and warrants.

The following table provides a roll-forward in the changes in fair value from September 30, 2018 to September 30, 2019 for all investments and secured borrowings for which the Company determined fair value using unobservable (Level 3) factors:

Senior Secured Debt

Debt (including debt investments in SLF JV I)

Equity and Warrants

Secured Borrowings

Investments Liabilities

Senior Secured Debt Subordinated

Debt (including debt investment in SLF JV I) Preferred

Equity Common

Equity and Warrants Total Secured Borrowings

Fair value as of September 30, 2018 $ 638,971 $ 158,859 $ 4,918 $ 61,134 $ 863,882 $ 9,728

New investments 257,378 2,664 7,019 2,514 269,575 —

Redemptions/repayments/sales

Sales and repayments (309,263) (23,365) (498) (31,990) (365,116) (9,822)

Transfers in (a)(c) 32,293 — 28,984 — 61,277 —

Transfers out (b)(c) (28,984) (33,150) — (12,073) (74,207) —

Net accrual of PIK interest income

PIK interest income 5,037 149 — — 5,186 —

Accretion of OID 16,601 1,268 — — 17,869 —

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(b) There was one transfer from Level 3 to Level 1 during the year ended September 30, 2019 as a result of an initial public offering of a portfolio company.

There was also one transfer out of Level 3 during the year ended September 30, 2019 as a result of an investment restructuring in which debt investments were exchanged for equity investments that are valued using net asset value as a practical expedient.

(c) There was one transfer out of senior secured debt into preferred equity during the year ended September 30, 2019 as a result of an investment restructuring in which debt investments were exchanged for equity investments.

There was also one transfer out of Level 3 during the year ended September 30, 2019 as a

OAKTREE SPECIALTY LENDING CORPORATION

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(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The following table provides a roll-forward in the changes in fair value from September 30, 2017 to September 30, 2018 for all investments and secured borrowings for which the Company determined fair value using unobservable (Level 3) factors:

Senior Secured Debt

Debt (including debt investments in SLF JV I)

Equity and Warrants

Secured Borrowings

Fair value as of September 30, 2017

New investments & net revolver activity

Redemptions/repayments/sales

Transfers out (a)

Net accrual of PIK interest income

Accretion of OID

Net unrealized appreciation (depreciation) on investments

Net unrealized depreciation on secured borrowings

Realized loss on investments

Fair value as of September 30, 2018

Net unrealized depreciation relating to Level 3 assets & liabilities still held as of September 30, 2018 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the year ended September 30, 2018

(a) There were transfers out of Level 3 to Level 2 for certain investments during the year ended September 30, 2018 as a result of an increased number of market quotes available and/or increased market liquidity.

result of an investment restructuring in which debt investments were exchanged for equity investments that are valued using net asset value as a practical expedient.

Significant Unobservable Inputs for Level 3 Investments

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of September 30, 2020:

Valuation Technique

Unobservable Input

Asset Fair Value Valuation Technique Unobservable Input Range Weighted

Senior Secured Debt

Market yield technique

Enterprise value technique

EBITDA multiple

Enterprise value technique

Asset multiple

Transactions precedent

Transaction price

Market quotations

Broker quoted price

$ 542,354 Market Yield Market Yield (b) 6.6% - 30.0% 12.5%

35,508 Enterprise Value EBITDA Multiple (c) 0.6x - 6.3x 5.9x

11,510 Enterprise Value Asset Multiple (c) 0.9x - 1.1x 1.0x

314,865 Broker Quotations Broker Quoted Price (e) N/A - N/A N/A

Subordinated Debt

Market yield technique

Enterprise value technique

EBITDA multiple

SLF JV I debt investments

Enterprise value technique

Preferred & common equity

Enterprise value technique

Revenue multiple

Enterprise value technique

EBITDA multiple

Enterprise value technique

Asset multiple

Weighted averages are calculated based on fair value of investments.

Used when market participants would take into account market yield when pricing the investment.

Used when market participants would use such multiples when pricing the investment.

Used when there is an observable transaction or pending event for the investment.

The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments.

Since these prices are non-binding, they may not be indicative of fair

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

29,314 Market Yield Market Yield (b) 4.8% - 15.0% 9.3%

588 Enterprise Value EBITDA Multiple (c) 7.6x - 8.6x 8.1x

SLF JV I Debt Investment

96,250 Enterprise Value N/A (f) N/A - N/A N/A

Preferred & Common Equity 16,470 Enterprise Value Revenue Multiple (c) 0.9x - 7.0x 3.1x

45,934 Enterprise Value EBITDA Multiple (c) 0.6x - 15.0x 7.6x

1,622 Enterprise Value Asset Multiple (c) 0.9x - 1.1x 1.0x

1,013 Transactions Precedent Transaction Price (d) N/A - N/A N/A

Total $ 1,095,428

(a) Weighted averages are calculated based on fair value of investments.

(b) Used when market participants would take into account market yield when pricing the investment.

(d) Used when there is an observable transaction or pending event for the investment.

(e) The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments.

Since these prices are non-binding, they may not be indicative of fair value.

The Company evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated.

Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.

The Company determined the value of its subordinated notes of SLF JV I based on the total assets less the total liabilities senior to the subordinated notes held at SLF JV I in an amount not exceeding par under the enterprise value technique.

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments and secured borrowings, which are carried at fair value, as of September 30, 2018 :

Valuation Technique

Unobservable Input

(f) The Company determined the value of its subordinated notes of SLF JV I based on the total assets less the total liabilities senior to the subordinated notes held at SLF JV I in an amount not exceeding par under the EV technique.

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value, as of September 30, 2019:

Asset Fair Value Valuation Technique Unobservable Input Range Weighted

Senior Secured Debt

Market yield technique

Enterprise value technique

EBITDA multiple

Enterprise value technique

Asset multiple

Transactions precedent technique

Transaction price

Market quotations

Broker quoted price

$ 314,026 Market Yield Market Yield (b) 6.7% - 18.0% 11.2%

17,452 Enterprise Value EBITDA Multiple (c) 1.8x - 6.0x 5.0x

11,510 Enterprise Value Asset Multiple (c) 0.9x 1.1x 1.0x

3,750 Transactions Precedent Transaction Price (d) N/A - N/A N/A

306,596 Broker Quotations Broker Quoted Price (e) N/A - N/A N/A

Subordinated Debt

Market yield technique

Enterprise value technique

EBITDA multiple

SLF JV I debt investments

Enterprise value technique

Preferred & common equity

Enterprise value technique

Revenue multiple

Enterprise value technique

EBITDA multiple

Enterprise value technique

Asset multiple

Secured borrowings

Enterprise value technique

EBITDA multiple

Weighted averages are calculated based on fair value of investments or secured borrowings.

Used when market participants would take into account market yield when pricing the investment.

Used when market participants would use such multiples when pricing the investment or secured borrowings.

Used when there is an observable transaction or pending event for the investment.

11,353 Market Yield Market Yield (b) 13.0% - 15.0% 14.0%

2,706 Enterprise Value EBITDA Multiple (c) 6.5x - 8.5x 7.5x

SLF JV I Debt Investment

96,250 Enterprise Value N/A (f) N/A - N/A N/A

Preferred & Common Equity 4,004 Enterprise Value Revenue Multiple (c) 0.8x - 8.9x 3.3x

72,950 Enterprise Value EBITDA Multiple (c) 1.8x - 17.0x 6.9x

4,630 Enterprise Value Asset Multiple (c) 0.9x - 1.1x 1.0x

Total $ 845,227

(a) Weighted averages are calculated based on fair value of investments.

(b) Used when market participants would take into account market yield when pricing the investment.

(d) Used when there is an observable transaction or pending event for the investment.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Since these prices are non-binding, they may not be indicative of fair value.

1 unchanged sentence

Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.

The Company determined the value of its mezzanine notes of SLF JV I based on the total assets less the total liabilities senior to the mezzanine notes held at SLF JV I in an amount not exceeding par under the enterprise value technique.

Under the market yield technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt securities is the market yield.

Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.

Under the enterprise value technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities and secured borrowings is the earnings before interest, taxes, depreciation and amortization ("EBITDA"), revenue or asset multiple, as applicable.

Under the EV technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities is the earnings before interest, taxes, depreciation and amortization ("EBITDA"), revenue or asset multiple, as applicable.

Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Financial Instruments Disclosed, But Not Carried, At Fair Value

The following table presents the carrying value and fair value of the Company's financial liabilities disclosed, but not carried, at fair value as of September 30, 2020 and the level of each financial liability within the fair value hierarchy:

Value Fair Value Level 1 Level 2 Level 3

Credit facility payable $ 414,825 $ 414,825 $ — $ — $ 414,825

Unsecured notes payable (net of unamortized financing costs)

Unsecured notes payable (net of unamortized financing costs and unaccreted discount) 294,490 301,431 — 301,431 —

Total $ 709,315 $ 716,256 $ — $ 301,431 $ 414,825

The following table presents the carrying value and fair value of the Company's financial liabilities disclosed, but not carried, at fair value as of September 30, 2019 and the level of each financial liability within the fair value hierarchy:

Value Fair Value Level 1 Level 2 Level 3

Credit facility payable $ 314,825 $ 314,825 $ — $ — $ 314,825

Unsecured notes payable (net of unamortized financing costs) 158,542 164,966 — 164,966 —

Total $ 473,367 $ 479,791 $ — $ 164,966 $ 314,825

The principal value of the credit facility payable approximates fair value due to its variable interest rate and is included in Level 3 of the hierarchy.

The Company uses the unadjusted quoted price as of the valuation date to calculate the fair value of its 5.875% unsecured notes due 2024 ("2024 Notes") and its 6.125% unsecured notes due 2028 ("2028 Notes"), which currently trade under the symbol "OSLE" on the New York Stock Exchange and the symbol "OCSLL" on the Nasdaq Global Select Market, respectively.

Although these securities are publicly traded, the market is relatively inactive, and accordingly, these securities are included in Level 2 of the hierarchy.

As of September 30, 2020, unsecured notes payable consisted of the 3.500% unsecured notes due 2025 ("2025 Notes").

The Company used market quotes as of the valuation date to estimate the fair value of the 2025 Notes, which are included in Level 2 of the hierarchy.

As of September 30, 2019, unsecured notes payable consisted of the 5.875% unsecured notes due 2024 ("2024 Notes") and the 6.125% unsecured notes due 2028 ("2028 Notes").

The Company used the unadjusted quoted price as of the valuation date to calculate the fair value of the 2024 Notes and the 2028 Notes.

Although the 2024 Notes and the 2028 Notes were publicly traded as of September 30, 2019, the market was relatively inactive, and accordingly, these securities were included in Level 2 of the hierarchy.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Portfolio Composition

Summaries of the composition of the Company's portfolio at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets are shown in the following tables:

September 30, 2019

September 30, 2018

% of Total Investments

September 30, 2020 September 30, 2019

% of Total Investments % of Total Investments

Senior secured debt $ 1,345,012 80.58 % $ 1,170,258 77.35 %

Debt investment in SLF JV I 96,250 5.77 % 96,250 6.36 %

Subordinated debt 77,475 4.64 % 104,109 6.88 %

Debt investments in SLF JV I

Common equity & warrants

Common equity and warrants 61,561 3.69 % 52,630 3.48 %

LLC equity interests of SLF JV I 49,322 2.95 % 49,322 3.26 %

Preferred equity 39,550 2.37 % 40,445 2.67 %

September 30, 2019

September 30, 2018

% of Total Investments

% of Net Assets

% of Total Investments

% of Net Assets

Total $ 1,669,170 100.00 % $ 1,513,014 100.00 %

September 30, 2020 September 30, 2019

% of Total Investments % of Net Assets % of Total Investments % of Net Assets

Senior secured debt $ 1,323,043 84.06 % 144.61 % $ 1,130,876 78.64 % 121.51 %

Debt investments in SLF JV I

Debt investment in SLF JV I 96,250 6.12 % 10.52 % 96,250 6.69 % 10.34 %

Subordinated debt 65,562 4.17 % 7.17 % 81,298 5.65 % 8.74 %

2 unchanged sentences

LLC equity interests of SLF JV I 21,190 1.35 % 2.32 % 30,052 2.10 % 3.23 %

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Total $ 1,573,851 100.00 % 172.03 % $ 1,438,042 100.00 % 154.52 %

The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company's business.

The following tables show the composition of the Company's portfolio by geographic region at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets:

September 30, 2019

September 30, 2018

% of Total Investments

September 30, 2020 September 30, 2019

% of Total Investments % of Total Investments

Northeast $ 495,440 29.69 % $ 394,130 26.05 %

West 330,468 19.80 % 377,810 24.97 %

Midwest 285,674 17.11 % 322,651 21.33 %

International 210,963 12.64 % 171,129 11.31 %

September 30, 2019

September 30, 2018

% of Total Investments

% of Net Assets

% of Total Investments

% of Net Assets

Southeast 171,330 10.26 % 131,522 8.69 %

South 72,150 4.32 % 13,798 0.91 %

Southwest 67,867 4.07 % 66,781 4.41 %

Northwest 35,278 2.11 % 35,193 2.33 %

Total $ 1,669,170 100.00 % $ 1,513,014 100.00 %

September 30, 2020 September 30, 2019

% of Total Investments % of Net Assets % of Total Investments % of Net Assets

Northeast $ 446,499 28.38 % 48.81 % $ 358,328 24.93 % 38.50 %

West 325,708 20.69 % 35.60 % 350,660 24.38 % 37.68 %

Midwest 252,482 16.04 % 27.60 % 297,433 20.68 % 31.97 %

International 213,741 13.58 % 23.36 % 175,687 12.22 % 18.88 %

The following tables show the composition of the Company's portfolio by industry at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets as of September 30, 2019 and September 30, 2018 :

Southeast 165,516 10.52 % 18.09 % 125,306 8.71 % 13.46 %

South 70,551 4.48 % 7.71 % 13,416 0.93 % 1.44 %

Southwest 65,647 4.17 % 7.18 % 82,395 5.73 % 8.85 %

Northwest 33,707 2.14 % 3.68 % 34,817 2.42 % 3.74 %

Total $ 1,573,851 100.00 % 172.03 % $ 1,438,042 100.00 % 154.52 %

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

September 30, 2019

September 30, 2018

% of Total Investments

Multi-sector holdings (1)

September 30, 2020 September 30, 2019

% of Total Investments % of Total Investments

Application Software $ 162,536 9.71 % $ 132,051 8.73 %

Healthcare services

Multi-Sector Holdings (1) 148,116 8.87 146,436 9.67

Data Processing & Outsourced Services 109,744 6.57 97,759 6.46

Biotechnology

Property & casualty insurance

Pharmaceuticals 99,471 5.96 59,294 3.92

Biotechnology 89,447 5.36 82,109 5.43

Health Care Services 71,139 4.26 100,173 6.62

Specialized Finance 51,909 3.11 53,227 3.52

Healthcare technology

Auto parts & equipment

Real estate services

Research & consulting services

Integrated telecommunication services

Aerospace & defense

Internet services & infrastructure

Personal Products 50,091 3.00 — —

Property & Casualty Insurance 47,995 2.88 73,076 4.83

Specialty Chemicals 44,786 2.68 31,788 2.10

Systems software

Movies & Entertainment 44,691 2.68 18,858 1.25

Integrated Telecommunication Services 44,583 2.67 33,741 2.23

Real Estate Services 39,023 2.34 39,332 2.60

Fertilizers & Agricultural Chemicals 33,743 2.02 — —

Auto Parts & Equipment 33,649 2.02 42,641 2.82

Oil & Gas Refining & Marketing 31,132 1.87 30,378 2.01

Alternative carriers

Managed healthcare

Construction & engineering

Healthcare distributors

Interactive media & services

Internet Services & Infrastructure 28,631 1.72 32,563 2.15

Aerospace & Defense 27,964 1.68 33,665 2.23

Managed Health Care 27,479 1.65 27,645 1.83

Oil & Gas Storage & Transportation 26,615 1.59 11,603 0.77

Electronic Components 25,600 1.53 — —

Research & Consulting Services 24,837 1.49 34,734 2.30

Education Services 22,926 1.37 15,672 1.04

Airport Services 22,376 1.34 — —

Health Care Supplies 21,660 1.30 — —

Health Care Technology 21,499 1.29 51,044 3.37

Independent Power Producers & Energy Traders 21,462 1.29 — —

Electrical Components & Equipment 20,934 1.25 21,210 1.40

Systems Software 20,694 1.24 31,716 2.10

General Merchandise Stores 19,220 1.15 18,946 1.25

Movies & entertainment

Diversified Support Services 18,797 1.13 18,805 1.24

Apparel, accessories & luxury goods

Insurance Brokers 17,546 1.05 — —

Hotels, Resorts & Cruise Lines 15,378 0.92 — —

Diversified Real Estate Activities 15,288 0.92 — —

Industrial Machinery 15,081 0.90 17,055 1.13

Education services

IT Consulting & Other Services 14,919 0.89 14,975 0.99

Oil & gas equipment & services

Oil & gas storage & transportation

Internet & Direct Marketing Retail 14,802 0.89 — —

Apparel, Accessories & Luxury Goods 13,734 0.82 18,192 1.20

Advertising 13,611 0.82 42,405 2.80

Construction & Engineering 13,277 0.80 23,443 1.55

Health Care Distributors 12,810 0.77 22,561 1.49

Metal & Glass Containers 11,273 0.68 — —

Airlines 10,535 0.63 10,640 0.70

Restaurants 10,248 0.61 3,097 0.20

Trading Companies & Distributors 10,228 0.61 10,357 0.68

Specialized REITs

Household appliances

Commercial Printing 7,868 0.47 6,002 0.40

Environmental & facilities services

Food Retail 6,851 0.41 14,473 0.96

Oil & Gas Equipment & Services 3,313 0.20 12,165 0.80

Health Care Facilities 3,133 0.19 — —

Construction Materials 2,150 0.13 — —

Leisure Facilities 1,887 0.11 1,887 0.12

1 unchanged sentence

Thrifts & Mortgage Finance 938 0.06 1,217 0.08

Specialized REITs 133 0.01 8,264 0.55

Other Diversified Financial Services 113 0.01 113 0.01

Alternative Carriers — — 29,400 1.94

Interactive Media & Services — — 21,805 1.44

Household Appliances — — 7,837 0.52

Environmental & Facilities Services — — 5,940 0.39

Human Resource & Employment Services — — 830 0.05

Department Stores — — 585 0.04

Other diversified financial services

Healthcare equipment

Oil & gas exploration & production

Technology distributors

Consumer electronics

Personal products

Investment banking & brokerage

Security & alarm services

Coal & consumable fuels

Commodity chemicals

Hypermarkets & super centers

Total $ 1,669,170 100.00 % $ 1,513,014 100.00 %

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

September 30, 2019

September 30, 2018

% of Total Investments

% of Net Assets

% of Total Investments

% of Net Assets

September 30, 2020 September 30, 2019

% of Total Investments % of Net Assets % of Total Investments % of Net Assets

Application Software $ 160,591 10.21 % 17.57 % $ 129,577 9.00 % 13.94 %

Multi-Sector Holdings (1) 121,751 7.74 13.31 128,539 8.94 13.81

Pharmaceuticals 103,092 6.55 11.27 60,057 4.18 6.45

Data Processing & Outsourced Services 99,589 6.33 10.89 98,267 6.83 10.56

Biotechnology 96,624 6.14 10.56 85,719 5.96 9.21

Property & casualty insurance

Pharmaceuticals

Healthcare services

Healthcare technology

Health Care Services 59,925 3.81 6.55 58,391 4.06 6.27

Personal Products 51,024 3.24 5.58 — — —

Specialized Finance 48,425 3.08 5.29 51,485 3.58 5.53

Auto parts & equipment

Property & Casualty Insurance 46,737 2.97 5.11 74,148 5.16 7.97

Movies & Entertainment 43,592 2.77 4.76 18,613 1.29 2.00

Integrated Telecommunication Services 41,091 2.61 4.49 28,876 2.01 3.10

Specialty Chemicals 39,008 2.48 4.26 23,514 1.64 2.53

Real Estate Services 37,723 2.40 4.12 39,501 2.75 4.24

Research & consulting services

Aerospace & defense

Internet services & infrastructure

Fertilizers & Agricultural Chemicals 33,719 2.14 3.69 — — —

Auto Parts & Equipment 31,382 1.99 3.43 40,484 2.82 4.35

Oil & Gas Refining & Marketing 29,826 1.90 3.26 31,597 2.20 3.40

Managed Health Care 26,681 1.70 2.92 27,775 1.93 2.98

Internet Services & Infrastructure 26,587 1.69 2.91 32,565 2.26 3.50

Electronic Components 26,552 1.69 2.90 — — —

Oil & Gas Storage & Transportation 25,749 1.64 2.81 11,926 0.83 1.28

Aerospace & Defense 24,521 1.56 2.68 33,738 2.35 3.63

Research & Consulting Services 24,212 1.54 2.65 37,336 2.60 4.01

Health Care Technology 22,058 1.40 2.41 52,275 3.64 5.62

Health Care Supplies 21,634 1.37 2.36 — — —

Airport Services 21,283 1.35 2.33 — — —

Independent Power Producers & Energy Traders 20,812 1.32 2.27 — — —

Systems Software 20,481 1.30 2.24 31,504 2.19 3.39

Alternative carriers

Integrated telecommunication services

Managed healthcare

Construction & engineering

Specialty chemicals

Interactive media & services

Healthcare distributors

Electrical Components & Equipment 20,465 1.30 2.24 20,032 1.39 2.15

Diversified support services

Movies & entertainment

Insurance Brokers 18,083 1.15 1.98 — — —

General Merchandise Stores 17,877 1.14 1.95 16,934 1.18 1.82

Industrial machinery

Leisure products

Diversified Support Services 17,689 1.12 1.93 18,624 1.30 2.00

Hotels, Resorts & Cruise Lines 17,081 1.09 1.87 — — —

Diversified Real Estate Activities 16,846 1.07 1.84 — — —

Internet & Direct Marketing Retail 15,307 0.97 1.67 — — —

IT Consulting & Other Services 13,905 0.88 1.52 13,792 0.96 1.48

Oil & gas equipment & services

Apparel, accessories & luxury goods

Oil & gas storage & transportation

Construction & Engineering 13,465 0.86 1.47 23,982 1.67 2.58

Advertising 13,440 0.85 1.47 37,261 2.59 4.00

Airlines 13,132 0.83 1.44 16,140 1.12 1.73

Health Care Distributors 12,260 0.78 1.34 21,962 1.53 2.36

Metal & Glass Containers 11,833 0.75 1.29 — — —

Industrial Machinery 11,643 0.74 1.27 16,848 1.17 1.81

Trading Companies & Distributors 10,069 0.64 1.10 10,370 0.72 1.11

Restaurants 7,886 0.50 0.86 2,800 0.19 0.30

Apparel, Accessories & Luxury Goods 7,856 0.50 0.86 13,286 0.92 1.43

Commercial Printing 7,334 0.47 0.80 5,900 0.41 0.63

Education Services 7,088 0.45 0.77 16 — —

Food Retail 6,998 0.44 0.76 14,903 1.04 1.60

Health Care Facilities 3,640 0.23 0.40 — — —

Oil & Gas Equipment & Services 2,588 0.16 0.28 13,652 0.95 1.47

Construction Materials 2,073 0.13 0.23 — — —

Thrifts & Mortgage Finance 353 0.02 0.04 691 0.05 0.07

Specialized REITs 222 0.01 0.02 8,213 0.57 0.88

Leisure Products 49 — 0.01 15,054 1.05 1.62

Alternative Carriers — — — 29,580 2.06 3.18

Interactive Media & Services — — — 22,500 1.56 2.42

Household Appliances — — — 7,614 0.53 0.82

Environmental & Facilities Services — — — 5,937 0.41 0.64

Commercial printing

Leisure Facilities — — — 4,809 0.33 0.52

Human Resource & Employment Services — — — 775 0.05 0.08

Thrifts & mortgage finance

Department stores — — — 480 0.03 0.05

Education services

Specialty stores

Oil & gas exploration & production

Technology distributors

Consumer electronics

Personal products

Investment banking & brokerage

Security & alarm services

Healthcare equipment

Coal & consumable fuels

Commodity chemicals

Hypermarkets & super centers

$ 1,573,851 100.00 % 172.03 % $ 1,438,042 100.00 % 154.52 %

This industry includes the Company's investment in SLF JV I.

___________________

(1) This industry includes the Company's investments in SLF JV I, collateralized loan obligations and certain limited partnership interests.

OAKTREE SPECIALTY LENDING CORPORATION

4 unchanged sentences

Senior Loan Fund JV I, LLC

In May 2014, the Company entered into an LLC agreement with Trinity Universal Insurance Company, a subsidiary of Kemper Corporation ("Kemper"), to form SLF JV I.

In May 2014, the Company entered into an LLC agreement with Kemper to form SLF JV I.

The Company co-invests in senior secured loans of middle-market companies and other corporate debt securities with Kemper through its investment in SLF JV I.

10 unchanged sentences

The SLF JV I Subordinated Notes are (and the SLF Repack Notes were, prior to their redemption) senior in right of payment to SLF JV I LLC equity interests and subordinated in right of payment to SLF JV I’s secured debt.

As of September 30, 2019 , the Company and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I and the outstanding SLF JV I Subordinated Notes and as of September 30, 2018, the Company and Kemper owned in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interest in SLF JV I and the outstanding SLF Repack Notes.

SLF JV I has a senior revolving credit facility with Deutsche Bank AG, New York Branch (as amended, the "Deutsche Bank I Facility"), which permitted up to $250.0 million of borrowings as of September 30, 2019 and up to $200.0 million of borrowings as of September 30, 2018 .

As of September 30, 2020 and September 30, 2019, the Company and Kemper owned, in the aggregate, 87.5% and 12.5%, respectively, of the LLC equity interests of SLF JV I and the outstanding SLF JV I Subordinated Notes.

SLF JV I has a senior revolving credit facility with Deutsche Bank AG, New York Branch (as amended, the "Deutsche Bank I Facility"), which permitted up to $250.0 million of borrowings (subject to borrowing base and other limitations) as of September 30, 2020 and September 30, 2019.

Borrowings under the Deutsche Bank I Facility are secured by all of the assets of SLF JV I Funding LLC, a special purpose financing subsidiary of SLF JV I.

2 unchanged sentences

Under the Deutsche Bank I Facility, $167.9 million and $170.2 million of borrowings were outstanding as of September 30, 2020 and September 30, 2019, respectively.

As of September 30, 2020, the Deutsche Bank I Facility includes a waiver period (which extends through January 3, 2021) during which the facility agent is restricted from revaluing certain collateral obligations where the change in valuation is caused by or results from a business disruption due primarily to the COVID-19 pandemic (subject to SLF JV I’s ability to earlier terminate such period in certain circumstances).

As of September 30, 2020 and September 30, 2019, SLF JV I had total assets of $313.5 million and $360.9 million, respectively.

1 unchanged sentence

The portfolio companies in SLF JV I are in industries similar to those in which the Company may invest directly.

As of September 30, 2019 , the Company's investment in SLF JV I consisted of LLC equity interests of $30.1 million , at fair value, and SLF JV I Subordinated Notes of $96.3 million , at fair value.

As of September 30, 2018 , the Company's investment in SLF JV I consisted of LLC equity interests of $0.0 million , at fair value, and Class A mezzanine secured deferrable floating rate notes and Class B mezzanine secured deferrable fixed rate notes of $99.8 million and $29.5 million , at fair value, respectively.

As of September 30, 2020, the Company's investment in SLF JV I consisted of LLC equity interests and Subordinated Notes of $117.4 million, at fair value.

As of September 30, 2019, the Company's investment in SLF JV I consisted of LLC equity interests and Subordinated Notes of $126.3 million, at fair value.

As of each of September 30, 2020 and September 30, 2019, the Company and Kemper had funded approximately $165.5 million to SLF JV I, of which $144.8 million was from the Company.

5 unchanged sentences

Below is a summary of SLF JV I's portfolio, followed by a listing of the individual loans in SLF JV I's portfolio as of September 30, 2020 and September 30, 2019:

September 30, 2019

September 30, 2018

September 30, 2020 September 30, 2019

Senior secured loans (1) $307,579 $340,960

9 unchanged sentences

SLF JV I Portfolio as of September 30, 2020

Portfolio Company

Investment Type

Cash Interest Rate (1)(2)

Fair Value (3)

Access CIG, LLC

First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025

Diversified support services

Portfolio Company Investment Type Cash Interest Rate (1)(2) Industry Principal Cost Fair Value (3) Notes

Access CIG, LLC First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025 3.91 % Diversified Support Services $ 9,206 $ 9,170 $ 9,029

AdVenture Interactive, Corp.

927 shares of common stock

927 shares of common stock Advertising 1,390 1,373 (4)

AI Ladder (Luxembourg) Subco S.a.r.l.

First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025

Electrical components & equipment

First Lien Term Loan, LIBOR+4.75% cash due 5/31/2024

IT consulting & other services

AL Midcoast Holdings LLC

First Lien Term Loan, LIBOR+5.50% cash due 8/1/2025

Oil & gas storage & transportation

First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 4.65 % Electrical Components & Equipment 6,038 5,914 5,781 (4)

First Lien Term Loan, LIBOR+7.50% cash due 4/17/2025 8.50 % Hotels, Resorts & Cruise Lines 3,051 2,981 3,311 (4)

Altice France S.A.

First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026

Integrated telecommunication services

First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026 4.15 % Integrated Telecommunication Services 4,643 4,450 4,527

Alvogen Pharma US, Inc.

First Lien Term Loan, LIBOR+4.75% cash due 4/1/2022

Pharmaceuticals

First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025

Application software

First Lien Revolver, LIBOR+7.25% cash due 1/10/2025

Application software

First Lien Term Loan, LIBOR+5.25% cash due 12/31/2023 6.25 % Pharmaceuticals 9,879 9,623 9,566

Amplify Finco Pty Ltd.

First Lien Term Loan, LIBOR+4.00% cash due 11/26/2026 4.75 % Movies & Entertainment 7,960 7,880 6,846 (4)

Anastasia Parent, LLC First Lien Term Loan, LIBOR+3.75% cash due 8/11/2025 Personal Products 2,828 2,282 1,248 (6)

First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 8.25 % Application Software 4,615 4,550 4,526 (4)

First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 Application Software — (5) (8) (4)(5)

Total Apptio, Inc.

Aurora Lux Finco S.À.R.L.

First Lien Term Loan, LIBOR+6.00% cash due 12/24/2026 7.00 % Airport Services 6,468 6,324 6,015 (4)

Blackhawk Network Holdings, Inc.

First Lien Term Loan, LIBOR+3.00% cash due 6/15/2025

Data processing & outsourced services

First Lien Term Loan, LIBOR+3.00% cash due 6/15/2025 3.15 % Data Processing & Outsourced Services 9,775 9,758 9,251

Boxer Parent Company Inc.

First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025

Systems software

Brazos Delaware II, LLC

First Lien Term Loan, LIBOR+4.00% cash due 5/21/2025

Oil & gas equipment & services

C5 Technology Holdings, LLC

171 Common Units

IT consulting & other services

7,193,539.63 Preferred Units

First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025 4.40 % Systems Software 7,532 7,448 7,331 (4)

Brazos Delaware II, LLC First Lien Term Loan, LIBOR+4.00% cash due 5/21/2025 4.16 % Oil & Gas Equipment & Services 7,331 7,306 5,600

C5 Technology Holdings, LLC 171 Common Units Data Processing & Outsourced Services — — (4)

7,193,539.63 Preferred Units Data Processing & Outsourced Services 7,194 5,683 (4)

Total C5 Technology Holdings, LLC 7,194 5,683

Cast & Crew Payroll, LLC

First Lien Term Loan, LIBOR+4.00% cash due 2/9/2026

Application software

Carrols Restaurant Group, Inc.

First Lien Term Loan, LIBOR+6.25% cash due 4/30/2026 7.25 % Restaurants 3,990 3,792 3,960

CITGO Petroleum Corp.

First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024

Oil & gas refining & marketing

First Lien Term Loan, LIBOR+4.50% cash due 9/23/2026

Alternative Carriers

First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024 6.00 % Oil & Gas Refining & Marketing 7,184 7,112 6,842 (4)

Clear Channel Outdoor Holdings, Inc.

First Lien Term Loan, LIBOR+3.50% cash due 8/21/2026 3.76 % Advertising 331 290 302

Finco LLC First Lien Term Loan, LIBOR+4.50% cash due 12/11/2026 5.50 % Alternative Carriers 7,437 7,262 7,228

Curium Bidco S.à.r.l.

First Lien Term Loan, LIBOR+4.00% cash due 7/9/2026

Biotechnology

First Lien Term Loan, LIBOR+3.75% cash due 7/9/2026 3.97 % Biotechnology 5,940 5,895 5,895

Dcert Buyer, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 8/8/2026

Internet services & infrastructure

DigiCert, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 10/31/2024

Internet services & infrastructure

Ellie Mae, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 4/17/2026

Application software

Everi Payments Inc.

First Lien Term Loan, LIBOR+3.00% cash due 5/9/2024

Casinos & gaming

Falmouth Group Holdings Corp.

First Lien Term Loan, LIBOR+6.75% cash due 12/14/2021

Specialty chemicals

Frontier Communications Corporation

First Lien Term Loan, LIBOR+3.75% cash due 6/15/2024

Integrated telecommunication services

Gentiva Health Services, Inc.

First Lien Term Loan, LIBOR+3.75% cash due 7/2/2025

Healthcare services

First Lien Term Loan, LIBOR+4.00% cash due 10/16/2026 4.15 % Internet Services & Infrastructure 7,960 7,940 7,879

Dealer Tire, LLC First Lien Term Loan, LIBOR+4.25% cash due 12/12/2025 4.40 % Distributors 943 902 924

eResearch Technology, Inc.

First Lien Term Loan, LIBOR+4.50% cash due 2/4/2027 5.50 % Application Software 7,481 7,406 7,461

Frontier Communications Corporation First Lien Term Loan, PRIME+2.75% cash due 6/15/2024 6.00 % Integrated Telecommunication Services 3,939 3,901 3,887

Gigamon, Inc.

First Lien Term Loan, LIBOR+4.25% cash due 12/27/2024

Systems software

First Lien Term Loan, LIBOR+2.75% cash due 10/10/2025

Interactive media & services

Guidehouse LLP

Second Lien Term Loan, LIBOR+7.50% cash due 5/1/2026

Research & consulting services

First Lien Term Loan, LIBOR+4.25% cash due 12/27/2024 5.25 % Systems Software 7,781 7,734 7,684

Global Medical Response, Inc.

First Lien Term Loan, LIBOR+4.75% cash due 10/2/2025 5.75 % Health Care Services 2,231 2,187 2,185

Guidehouse LLP Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026 8.15 % Research & Consulting Services 6,000 5,979 5,790 (4)

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Portfolio Company

Investment Type

Cash Interest Rate (1)(2)

Fair Value (3)

Indivior Finance S.a.r.l.

First Lien Term Loan, LIBOR+4.50% cash due 12/19/2022

Pharmaceuticals

Portfolio Company Investment Type Cash Interest Rate (1)(2) Industry Principal Cost Fair Value (3) Notes

Helios Software Holdings, Inc.

First Lien Term Loan, LIBOR+4.25% cash due 10/24/2025 4.52 % Systems Software $ 3,970 $ 3,930 $ 3,923

Intelsat Jackson Holdings S.A.

First Lien Term Loan, LIBOR+3.75% cash due 11/27/2023

Alternative Carriers

First Lien Term Loan, PRIME+4.75% cash due 11/27/2023 8.00 % Alternative Carriers 3,568 3,541 3,598

First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 7/13/2022 6.50 % Alternative Carriers 971 801 1,011 (5)

Total Intelsat Jackson Holdings S.A.

KIK Custom Products Inc.

First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023

Household products

McDermott Technology (Americas), Inc.

First Lien Term Loan, LIBOR+5.00% cash due 5/9/2025

Oil & gas equipment & services

First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023 5.00 % Household Products 5,322 5,308 5,302

LogMeIn, Inc.

First Lien Term Loan, LIBOR+4.75% cash due 8/31/2027 4.91 % Application Software 5,000 4,876 4,842

Mindbody, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 2/14/2025

Internet services & infrastructure

First Lien Revolver, LIBOR+7.00% cash due 2/15/2025

Internet services & infrastructure

First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/2025 8.00 % Internet Services & Infrastructure 4,546 4,481 4,192 (4)

First Lien Revolver, LIBOR+8.00% cash due 2/14/2025 Internet Services & Infrastructure — (7) (38) (4)(5)

Total Mindbody, Inc.

MRI Software LLC First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026 6.50 % Application Software 3,830 3,795 3,737 (4)

First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026 Application Software — (1) (4) (4)(5)

First Lien Revolver, LIBOR+5.50% cash due 2/10/2026 Application Software — (3) (8) (4)(5)

Total MRI Software LLC 3,791 3,725

Navicure, Inc.

First Lien Term Loan, LIBOR+3.75% cash due 9/18/2026

Healthcare technology

First Lien Term Loan, LIBOR+4.00% cash due 10/22/2026 4.15 % Health Care Technology 5,970 5,940 5,849

New IPT, Inc.

First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021

Oil & gas equipment & services

21.876 Class A Common Units in New IPT Holdings, LLC

Oil & gas equipment & services

First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021 6.00 % Oil & Gas Equipment & Services 1,006 1,006 786 (4)

21.876 Class A Common Units in New IPT Holdings, LLC Oil & Gas Equipment & Services — — (4)

Total New IPT, Inc.

Northern Star Industries Inc.

First Lien Term Loan, LIBOR+4.50% cash due 3/31/2025

Electrical components & equipment

Novetta Solutions, LLC

First Lien Term Loan, LIBOR+5.00% cash due 10/17/2022

Application software

OCI Beaumont LLC

First Lien Term Loan, LIBOR+4.00% cash due 3/13/2025

Commodity chemicals

OEConnection LLC

First Lien Term Loan, LIBOR+4.00% cash due 9/24/2026

Application software

First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/24/2026

Application software

First Lien Term Loan, LIBOR+4.75% cash due 3/31/2025 5.75 % Electrical Components & Equipment 6,825 6,803 6,518

Northwest Fiber, LLC First Lien Term Loan, LIBOR+5.50% cash due 4/30/2027 5.66 % Integrated Telecommunication Services 2,400 2,314 2,403

Novetta Solutions, LLC First Lien Term Loan, LIBOR+5.00% cash due 10/17/2022 6.00 % Application Software 5,931 5,909 5,827

OEConnection LLC First Lien Term Loan, LIBOR+4.00% cash due 9/25/2026 4.15 % Application Software 7,455 7,418 7,371

First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026 Application Software — (2) (5) (5)

Total OEConnection LLC 7,416 7,366

Red Ventures, LLC

First Lien Term Loan, LIBOR+3.00% cash due 11/8/2024

Interactive media & services

Olaplex, Inc.

First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026 7.50 % Personal Products 4,938 4,851 4,938 (4)

First Lien Revolver, LIBOR+6.50% cash due 1/8/2025 7.50 % Personal Products 270 261 270 (4)(5)

Total Olaplex, Inc.

PetVet Care Centers, LLC First Lien Term Loan, LIBOR+4.25% cash due 2/14/2025 5.25 % Specialized Consumer Services 2,743 2,736 2,747

PG&E Corporation First Lien Term Loan, LIBOR+4.50% cash due 6/23/2025 5.50 % Electric Utilities 5,985 5,899 5,875

Recorded Books, Inc.

First Lien Term Loan, LIBOR+4.25% cash due 8/31/2025 4.75 % Publishing 6,000 5,940 5,940

Sabert Corporation First Lien Term Loan, LIBOR+4.50% cash due 12/10/2026 5.50 % Metal & Glass Containers 2,828 2,800 2,791

Salient CRGT, Inc.

First Lien Term Loan, LIBOR+6.00% cash due 2/28/2022

Aerospace & defense

Scientific Games International, Inc.

First Lien Term Loan, LIBOR+2.75% cash due 8/14/2024

Casinos & gaming

SHO Holding I Corporation

First Lien Term Loan, LIBOR+5.00% cash due 10/27/2022

Signify Health, LLC

First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024

Healthcare services

First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022 7.50 % Aerospace & Defense 2,111 2,099 1,963 (4)

SHO Holding I Corporation First Lien Term Loan, LIBOR+3.00% cash PIK 2.25% due 4/27/2024 4.00 % Footwear 8,396 8,380 5,898

Signify Health, LLC First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024 5.50 % Health Care Services 9,750 9,690 9,409

Sirva Worldwide, Inc.

First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025

Diversified support services

Sunshine Luxembourg VII SARL

First Lien Term Loan, LIBOR+4.25% cash due 9/25/2026

Personal products

Thruline Marketing, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022

927 Class A Units in FS AVI Holdco, LLC

Total Thruline Marketing, Inc.

Triple Royalty Sub LLC

Fixed Rate Bond 144A 9.0% Toggle PIK cash due 4/15/2033

Pharmaceuticals

Uber Technologies, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 4/4/2025

Application software

UFC Holdings, LLC

First Lien Term Loan, LIBOR+3.25% cash due 4/29/2026

Movies & entertainment

Uniti Group LP

First Lien Term Loan, LIBOR+5.00% cash due 10/24/2022

Specialized REITs

Valeant Pharmaceuticals International Inc.

First Lien Term Loan, LIBOR+2.75% cash due 11/27/2025

Pharmaceuticals

First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025 5.65 % Diversified Support Services 4,781 4,709 3,992

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Portfolio Company

Investment Type

Cash Interest Rate (1)(2)

Fair Value (3)

Portfolio Company Investment Type Cash Interest Rate (1)(2) Industry Principal Cost Fair Value (3) Notes

Star US Bidco LLC First Lien Term Loan, LIBOR+4.25% cash due 3/17/2027 5.25 % Industrial Machinery $ 3,718 $ 3,532 $ 3,551

Sunshine Luxembourg VII SARL First Lien Term Loan, LIBOR+4.25% cash due 10/1/2026 5.25 % Personal Products 7,940 7,900 7,911

Supermoose Borrower, LLC First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025 3.90 % Application Software 4,888 4,575 4,407 (4)

Surgery Center Holdings, Inc.

First Lien Term Loan, LIBOR+3.25% cash due 9/3/2024 4.25 % Health Care Facilities 4,962 4,943 4,691 (4)

Uber Technologies, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 4/4/2025 5.00 % Application Software 2,997 2,959 2,980

UFC Holdings, LLC First Lien Term Loan, LIBOR+3.25% cash due 4/29/2026 4.25 % Movies & Entertainment 2,856 2,816 2,814

Veritas US Inc.

First Lien Term Loan, LIBOR+4.50% cash due 1/27/2023

Application software

Verra Mobility, Corp.

First Lien Term Loan, LIBOR+3.75% cash due 2/28/2025

Data processing & outsourced services

WP CPP Holdings, LLC

Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026

Aerospace & defense

First Lien Term Loan, LIBOR+5.50% cash due 9/1/2025 6.50 % Application Software 6,500 6,371 6,375

Verscend Holding Corp.

First Lien Term Loan, LIBOR+4.50% cash due 8/27/2025 4.65 % Health Care Technology 4,112 4,080 4,084 (4)

VM Consolidated, Inc.

First Lien Term Loan, LIBOR+3.25% cash due 2/28/2025 3.40 % Data Processing & Outsourced Services 10,487 10,495 10,291

Windstream Services II, LLC First Lien Term Loan, LIBOR+6.25% cash due 9/21/2027 7.25 % Integrated Telecommunication Services 7,980 7,662 7,744 (4)

WP CPP Holdings, LLC Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026 8.75 % Aerospace & Defense 6,000 5,956 4,680 (4)

$ 307,579 $ 311,428 $ 298,771

(1) Represents the interest rate as of September 30, 2020.

8 unchanged sentences

However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.

(4) This investment is held by both the Company and SLF JV I as of September 30, 2019 .

(5) Investment has undrawn commitments.

(4) This investment was held by both the Company and SLF JV I as of September 30, 2020.

(5) Investment had undrawn commitments.

Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis.

A negative fair value may result from the unfunded commitment being valued below par.

(6) This investment was on cash non-accrual status as of September 30, 2020.

Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

SLF JV I Portfolio as of September 30, 2019

Portfolio Company

Investment Type

Cash Interest Rate (1)(2)

Fair Value (3)

Accudyne Industries, LLC

First Lien Term Loan, LIBOR+3.00% cash due 8/18/2024

Industrial machinery

Portfolio Company Investment Type Cash Interest Rate (1)(2) Industry Principal Cost Fair Value (3) Notes

Access CIG, LLC First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025 6.07 % Diversified support services $ 9,300 $ 9,256 $ 9,201

AdVenture Interactive, Corp.

927 Common Stock Shares

927 shares of common stock Advertising 1,390 1,295 (4)

AI Ladder (Luxembourg) Subco S.a.r.l.

First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025

Electrical components & equipment

First Lien Term Loan, LIBOR+4.75% cash due 5/31/2024

IT consulting & other services

AL Midcoast Holdings LLC

First Lien Term Loan, LIBOR+5.50% cash due 8/1/2025

Oil & gas storage & transportation

Allied Universal Holdco LLC

First Lien Term Loan, LIBOR+3.75% cash due 7/28/2022

Security & alarm services

First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025 6.60 % Electrical components & equipment 6,145 5,992 5,659 (4)

Air Newco LP First Lien Term Loan, LIBOR+4.75% cash due 5/31/2024 6.79 % IT consulting & other services 9,900 9,875 9,916

AL Midcoast Holdings LLC First Lien Term Loan, LIBOR+5.50% cash due 8/1/2025 7.60 % Oil & gas storage & transportation 9,900 9,801 9,764

Altice France S.A.

First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026

Integrated telecommunication services

First Lien Term Loan, LIBOR+4.00% cash due 8/14/2026 6.03 % Integrated telecommunication services 7,444 7,282 7,439

Alvogen Pharma US, Inc.

First Lien Term Loan, LIBOR+4.75% cash due 4/1/2022

Pharmaceuticals

Asset International, Inc.

First Lien Term Loan, LIBOR+4.50% cash due 12/30/2024

Research & consulting services

First Lien Term Loan, LIBOR+4.75% cash due 4/1/2022 6.79 % Pharmaceuticals 7,656 7,656 6,963

First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025 9.56 % Application software 4,615 4,534 4,530 (4)

First Lien Revolver, LIBOR+7.25% cash due 1/10/2025 Application software — (7) (7) (4)(5)

Total Apptio, Inc.

Blackhawk Network Holdings, Inc.

First Lien Term Loan, LIBOR+3.00% cash due 6/15/2025

Data processing & outsourced services

Brazos Delaware II, LLC

First Lien Term Loan, LIBOR+4.00% cash due 5/21/2025

Oil & gas equipment & services

Chloe Ox Parent LLC

First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024

Healthcare services

First Lien Term Loan, LIBOR+3.00% cash due 6/15/2025 5.04 % Data processing & outsourced services 9,875 9,855 9,858

Boxer Parent Company Inc.

First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025 6.29 % Systems software 7,609 7,518 7,336 (4)

Brazos Delaware II, LLC First Lien Term Loan, LIBOR+4.00% cash due 5/21/2025 6.05 % Oil & gas equipment & services 7,406 7,376 6,855

C5 Technology Holdings, LLC 171 Common Units Data Processing & Outsourced Services — — (4)

7,193,539.63 Preferred Units Data Processing & Outsourced Services 7,194 7,194 (4)

Total C5 Technology Holdings, LLC 7,194 7,194

Cast & Crew Payroll, LLC First Lien Term Loan, LIBOR+4.00% cash due 2/9/2026 6.05 % Application software 4,975 4,925 5,018

CITGO Petroleum Corp.

First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024 7.10 % Oil & gas refining & marketing 7,960 7,880 8,010 (4)

Finco LLC First Lien Term Loan, LIBOR+4.50% cash due 9/23/2026 7.10 % Alternative Carriers 8,000 7,840 7,888 (4)

Curium Bidco S.à r.l.

First Lien Term Loan, LIBOR+4.00% cash due 7/9/2026 6.10 % Biotechnology 6,000 5,955 6,030

Dcert Buyer, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 8/8/2026 6.26 % Internet services & infrastructure 8,000 7,980 7,985

DigiCert, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 10/31/2024 6.04 % Internet services & infrastructure 8,250 8,148 8,249 (4)

Ellie Mae, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 4/17/2026 6.04 % Application software 5,000 4,975 5,015

Everi Payments Inc.

First Lien Term Loan, LIBOR+3.00% cash due 5/9/2024 5.04 % Casinos & gaming 4,764 4,742 4,776

Falmouth Group Holdings Corp.

First Lien Term Loan, LIBOR+6.75% cash due 12/14/2021 8.95 % Specialty chemicals 4,938 4,909 4,910

Frontier Communications Corporation First Lien Term Loan, LIBOR+3.75% cash due 6/15/2024 5.80 % Integrated telecommunication services 6,473 6,400 6,471

Gentiva Health Services, Inc.

First Lien Term Loan, LIBOR+3.75% cash due 7/2/2025 5.81 % Healthcare services 7,920 7,801 7,974

Gigamon, Inc.

First Lien Term Loan, LIBOR+4.25% cash due 12/27/2024 6.29 % Systems software 7,860 7,801 7,644

First Lien Term Loan, LIBOR+2.75% cash due 10/10/2025 4.81 % Interactive media & services 7,852 7,835 7,862

Guidehouse LLP Second Lien Term Loan, LIBOR+7.50% cash due 5/1/2026 9.54 % Research & consulting services 6,000 5,975 5,925 (4)

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Portfolio Company

Investment Type

Cash Interest Rate (1)(2)

Fair Value (3)

Clearent Newco, LLC

First Lien Term Loan, LIBOR+4.00% cash due 3/20/2024

Application software

Delayed Draw Term Loan, LIBOR+4.00% cash due 3/20/2024

Application software

First Lien Revolver, PRIME+3.00% cash due 3/20/2023

Application software

Total Clearent Newco, LLC

EOS Fitness Opco Holdings, LLC

First Lien Term Loan, LIBOR+8.25% cash due 12/30/2019

Leisure facilities

Second Lien Term Loan, LIBOR+7.50% cash due 5/1/2026

Research & consulting services

Everi Payments Inc.

First Lien Term Loan, LIBOR+3.00% cash due 5/9/2024

Casinos & gaming

Falmouth Group Holdings Corp.

First Lien Term Loan, LIBOR+6.75% cash due 12/14/2021

Specialty chemicals

Garretson Resolution Group, Inc.

First Lien Term Loan, LIBOR+6.50% cash due 5/22/2021

Diversified support services

First Lien Term Loan, LIBOR+4.50% cash due 12/27/2024

Systems software

IBC Capital Ltd.

First Lien Term Loan, LIBOR+3.75% cash due 9/11/2023

Metal & glass containers

InMotion Entertainment Group, LLC

First Lien Term Loan, LIBOR+7.25% cash due 10/1/2021

Consumer electronics

First Lien Term Loan, LIBOR+7.25% cash due 10/1/2021

Consumer electronics

Total InMotion Entertainment Group, LLC

Keypath Education, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022

927 shares Common Stock

Total Keypath Education, Inc.

Portfolio Company Investment Type Cash Interest Rate (1)(2) Industry Principal Cost Fair Value (3) Notes

Indivior Finance S.a.r.l.

First Lien Term Loan, LIBOR+4.50% cash due 12/19/2022 6.76 % Pharmaceuticals $ 7,898 $ 7,797 $ 7,272

Intelsat Jackson Holdings S.A.

First Lien Term Loan, LIBOR+3.75% cash due 11/27/2023 5.80 % Alternative Carriers 10,000 9,891 10,042

KIK Custom Products Inc.

First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023

Household products

First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023 6.26 % Household products 8,000 7,972 7,610

McDermott Technology (Americas), Inc.

First Lien Term Loan, LIBOR+5.00% cash due 5/12/2025

Oil & gas equipment & services

First Lien Term Loan, LIBOR+6.00% cash due 2/10/2023

Personal products

First Lien Term Loan, LIBOR+5.00% cash due 5/9/2025 7.10 % Oil & gas equipment & services 4,187 4,119 2,676

Mindbody, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 2/14/2025 9.06 % Internet services & infrastructure 4,524 4,443 4,438 (4)

First Lien Revolver, LIBOR+7.00% cash due 2/15/2025 Internet services & infrastructure — (9) (9) (4)(5)

Total Mindbody, Inc.

Navicure, Inc.

First Lien Term Loan, LIBOR+3.75% cash due 9/18/2026 6.13 % Healthcare technology 6,000 5,970 6,008

New IPT, Inc.

First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021

Oil & gas equipment & services

Second Lien Term Loan, LIBOR+5.10% cash due 9/17/2021

Oil & gas equipment & services

21.876 Class A Common Units

First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021 7.10 % Oil & gas equipment & services 1,422 1,422 1,422 (4)

21.876 Class A Common Units in New IPT Holdings, LLC Oil & gas equipment & services — 1,268 (4)

Total New IPT, Inc.

Northern Star Industries Inc.

First Lien Term Loan, LIBOR+4.75% cash due 3/31/2025

Electrical components & equipment

Novetta Solutions, LLC

First Lien Term Loan, LIBOR+5.00% cash due 10/17/2022

Application software

OCI Beaumont LLC

First Lien Term Loan, LIBOR+4.00% cash due 3/13/2025

Commodity chemicals

Refac Optical Group

First Lien Term Loan, LIBOR+8.00% cash due 1/9/2019

Specialty stores

First Lien Term Loan, LIBOR+4.50% cash due 3/31/2025 6.56 % Electrical components & equipment 6,895 6,868 6,792

Novetta Solutions, LLC First Lien Term Loan, LIBOR+5.00% cash due 10/17/2022 7.05 % Application software 5,993 5,961 5,882

OCI Beaumont LLC First Lien Term Loan, LIBOR+4.00% cash due 3/13/2025 6.10 % Commodity chemicals 7,880 7,872 7,890

OEConnection LLC First Lien Term Loan, LIBOR+4.00% cash due 9/24/2026 6.13 % Application software 7,312 7,275 7,298

First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/24/2026 Application software — (3) (1) (5)

Total OEConnection LLC 7,272 7,297

Red Ventures, LLC First Lien Term Loan, LIBOR+3.00% cash due 11/8/2024 5.04 % Interactive media & services 3,990 3,971 4,011

Salient CRGT, Inc.

First Lien Term Loan, LIBOR+5.75% cash due 2/28/2022

Aerospace & defense

First Lien Term Loan, LIBOR+6.00% cash due 2/28/2022 8.05 % Aerospace & defense 2,205 2,183 2,094 (4)

Scientific Games International, Inc.

First Lien Term Loan, LIBOR+2.75% cash due 8/14/2024

Casinos & gaming

SHO Holding I Corporation

First Lien Term Loan, LIBOR+5.00% cash due 11/18/2022

First Lien Term Loan, LIBOR+2.75% cash due 8/14/2024 4.79 % Casinos & gaming 6,516 6,491 6,470

SHO Holding I Corporation First Lien Term Loan, LIBOR+5.00% cash due 10/27/2022 7.26 % Footwear 8,420 8,403 7,999

Signify Health, LLC First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024 6.60 % Healthcare services 9,850 9,775 9,838

Sirva Worldwide, Inc.

First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025

Diversified support services

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Portfolio Company

Investment Type

Cash Interest Rate (1)(2)

Fair Value (3)

TravelCLICK, Inc.

Second Lien Term Loan, LIBOR+7.75% cash due 11/6/2021

Data Processing & outsourced services

TV Borrower US, LLC

First Lien Term Loan, LIBOR+4.75% cash due 2/22/2024

Integrated telecommunication services

First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025 7.54 % Diversified support services 4,906 4,833 4,759

Sunshine Luxembourg VII SARL First Lien Term Loan, LIBOR+4.25% cash due 9/25/2026 6.59 % Personal products 8,000 7,960 8,048

Thruline Marketing, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022 9.10 % Advertising 1,854 1,851 1,854 (4)

927 Class A Units in FS AVI Holdco, LLC Advertising 1,088 658 (4)

Total Thruline Marketing, Inc.

Triple Royalty Sub LLC Fixed Rate Bond 144A 9.0% Toggle PIK cash due 4/15/2033 Pharmaceuticals 5,000 5,000 5,175

Uber Technologies, Inc.

First Lien Term Loan, LIBOR+4.00% cash due 4/4/2025

Application software

Uniti Group LP

First Lien Term Loan, LIBOR+3.00% cash due 10/24/2022

Specialized REITs

First Lien Term Loan, LIBOR+4.00% cash due 4/4/2025 6.03 % Application software 9,875 9,836 9,836 (4)

UFC Holdings, LLC First Lien Term Loan, LIBOR+3.25% cash due 4/29/2026 5.30 % Movies & entertainment 4,489 4,489 4,506

Uniti Group LP First Lien Term Loan, LIBOR+5.00% cash due 10/24/2022 7.04 % Specialized REITs 6,401 6,221 6,256 (4)

Valeant Pharmaceuticals International Inc.

First Lien Term Loan, LIBOR+2.75% cash due 11/27/2025 4.79 % Pharmaceuticals 1,772 1,764 1,778

Veritas US Inc.

First Lien Term Loan, LIBOR+4.50% cash due 1/27/2023

Application software

First Lien Term Loan, LIBOR+4.50% cash due 1/27/2023 6.60 % Application software 6,894 6,856 6,534 (4)

Verra Mobility, Corp.

First Lien Term Loan, LIBOR+3.75% cash due 2/28/2025

Data processing & outsourced services

WP CPP Holdings, LLC

Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026

Aerospace & defense

First Lien Term Loan, LIBOR+3.75% cash due 2/28/2025 5.79 % Data processing & outsourced services 10,835 10,849 10,894

WP CPP Holdings, LLC Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026 10.01 % Aerospace & defense 6,000 5,949 5,974 (4)

$ 340,960 $ 347,985 $ 345,032

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

(1) Represents the interest rate as of September 30, 2019.

3 unchanged sentences

For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end.

All LIBOR shown above is in U.S.

All the LIBOR shown above is in U.S.

As of September 30, 2019, the reference rates for SLF JV I's variable rate loans were the 30-day LIBOR at 2.04%, the 60-day LIBOR at 2.09%, the 90-day LIBOR at 2.10%, the 180-day LIBOR at 2.06%, and the PRIME at 5.00%.

2 unchanged sentences

However, the determination of such fair value is not included in the Company's Board of Directors' valuation process described elsewhere herein.

(4) This investment is held by both the Company and SLF JV I as of September 30, 2018 .

(5) This investment was on cash non-accrual status as of September 30, 2018 .

Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

Both the cost and fair value of the Company's debt investment in SLF JV I were $96.3 million as of September 30, 2019 and $129.3 million as of September 30, 2018 .

The Company earned interest income of $9.8 million , $11.2 million (including $3.1 million of PIK interest) and $11.1 million on its debt investment in the SLF JV I for the years ended September 30, 2019 , 2018 and 2017.

(4) This investment was held by both the Company and SLF JV I as of September 30, 2019.

(5) Investment had undrawn commitments.

Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis.

A negative fair value may result from the unfunded commitment being valued below par.

Both the cost and fair value of the Company's debt investment in SLF JV I were $96.3 million as of each of September 30, 2020 and September 30, 2019.

The Company earned interest income of $8.1 million, $9.8 million and $11.2 million (including $3.1 million of PIK interest) on its debt investment in the SLF JV I for the years ended September 30, 2020, 2019 and 2018, respectively.

The Company's debt investment in SLF JV I bears interest at a rate of one-month LIBOR plus 7.0% per annum and matures on December 29, 2028.

The cost and fair value of the LLC equity interests in SLF JV I held by the Company was $49.3 million and $30.1 million , respectively, as of September 30, 2019 , and $16.2 million and $0.0 million , respectively, as of September 30, 2018 .

The Company did not earn dividend income for the year ended September 30, 2019 with respect to its investment in the LLC equity interests of SLF JV I.

The Company earned dividend income of $1.6 million and $1.1 million for the years ended September 30, 2018 and 2017, respectively, with respect to its LLC equity interests of SLF JV I.

The cost and fair value of the LLC equity interests in SLF JV I held by the Company were $49.3 million and $21.2 million, respectively, as of September 30, 2020, and $49.3 million and $30.1 million, respectively, as of September 30, 2019.

The Company did not earn dividend income for the years ended September 30, 2020 and 2019, with respect to its investment in the LLC equity interests of SLF JV I.

The Company earned dividend income of $1.6 million for the year ended September 30, 2018 with respect to its LLC equity interests of SLF JV I.

The LLC equity interests of SLF JV I are generally dividend producing to the extent SLF JV I has residual cash to be distributed on a quarterly basis.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Below is certain summarized financial information for SLF JV I as of September 30, 2020 and September 30, 2019 and for the years ended September 30, 2020, 2019 and 2018:

September 30, 2019

September 30, 2018

September 30, 2020 September 30, 2019

Selected Balance Sheet Information:

1 unchanged sentence

cost September 30, 2019:

Receivables from secured financing arrangements at fair value (cost September 30, 2019:

cost September 30, 2018:

$347,985) $ 298,771 $ 345,032

Cash and cash equivalents 5,389 3,674

Restricted cash 4,211 5,242

Other assets 5,093 6,912

Total assets $ 313,464 $ 360,860

Senior credit facility payable $ 167,910 $ 170,210

1 unchanged sentence

proceeds September 30, 2019:

$110,000) 110,000 110,000

Other liabilities 11,336 46,303

2 unchanged sentences

Total liabilities and members' equity $ 313,464 $ 360,860

Year ended September 30, 2019

Year ended September 30, 2018

Year ended September 30, 2020 Year ended September 30, 2019 Year ended September 30, 2018

Selected Statements of Operations Information:

Interest income $ 19,808 $ 22,727 $ 20,574

Other income 338 153 65

Total investment income 20,146 22,880 20,639

6 unchanged sentences

(1) There are no management fees or incentive fees charged at SLF JV I.

SLF JV I has elected to fair value the debt securities issued to the Company and Kemper under ASC 825.

The debt securities are valued based on the total assets less the total liabilities senior to the subordinated notes of SLF JV I in an amount not exceeding par under the enterprise value technique.

SLF JV I has elected to fair value the debt securities issued to the Company and Kemper under FASB ASC Topic 825, Financial Instruments - Fair Value Option .

The debt securities are valued based on the total assets less the total liabilities senior to the subordinated notes of SLF JV I in an amount not exceeding par under the EV technique.

During the year ended September 30, 2020, the Company did not sell any debt investments to SLF JV I.

During the year ended September 30, 2019, the Company sold $8.4 million of senior secured debt investments to SLF JV I at fair value in exchange for $8.3 million cash consideration.

3 unchanged sentences

For the years ended September 30, 2020, 2019 and 2018, the Company recorded total fee income of $8.5 million, $6.7 million and $9.4 million, respectively, of which $0.7 million, $0.6 million and $1.2 million, respectively, was recurring in nature.

Recurring fee income primarily consisted of servicing fees and exit fees.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Share Data and Net Assets

1 unchanged sentence

The following table sets forth the computation of basic and diluted earnings per share, pursuant to ASC Topic 260-10, Earnings per Share , for the years ended September 30, 2020, 2019 and 2018:

(Share amounts in thousands)

(Share amounts in thousands) Year ended

September 30,

2020 Year ended

September 30,

2019 Year ended

September 30,

1 unchanged sentence

Net increase (decrease) in net assets resulting from operations $ 39,224 $ 126,160 $ 46,762

Weighted average common shares outstanding — basic

Weighted average common shares outstanding — basic and diluted 140,961 140,961 140,961

Earnings (loss) per common share — basic and diluted $ 0.28 $ 0.89 $ 0.33

4 unchanged sentences

The following table presents the changes in net assets for the years ended September 30, 2020, 2019 and 2018:

Additional paid-in-capital

Accumulated Overdistributed Earnings

Total Net Assets

Shares Par Value Additional paid-in-capital Accumulated Overdistributed Earnings Total Net Assets

Balance at September 30, 2017 140,961 $ 1,409 $ 1,579,278 $ (713,030) $ 867,657

2 unchanged sentences

Net realized gains (losses) — — — (115,267) (115,267)

Contributions from stockholders

Provision for income tax (expense) benefit — — — (622) (622)

Distributions to stockholders — — — (38,699) (38,699)

Tax return of capital — — (17,685) — (17,685)

Reclassification of additional paid-in capital — — (68,854) 68,854 —

Issuance of common stock under dividend reinvestment plan 303 3 1,408 — 1,411

Repurchases of common stock under stock repurchase program

Repurchases of common stock under dividend reinvestment program

Repurchases of common stock under dividend reinvestment plan (303) (3) (1,408) — (1,411)

Balance at September 30, 2018 140,961 $ 1,409 $ 1,492,739 $ (636,113) $ 858,035

2 unchanged sentences

Net realized gains (losses) — — — 20,805 20,805

Redemption premium on unsecured notes payable

Provision for income tax (expense) benefit — — — (1,011) (1,011)

Distributions to stockholders — — — (53,565) (53,565)

Tax return of capital

Reclassification of additional paid-in capital — — (4,965) 4,965 —

Issuance of common stock under dividend reinvestment plan 269 3 1,341 — 1,344

Repurchases of common stock under dividend reinvestment program

Repurchases of common stock under dividend reinvestment plan (269) (3) (1,341) — (1,344)

Balance at September 30, 2019 140,961 $ 1,409 $ 1,487,774 $ (558,553) $ 930,630

4 unchanged sentences

Distributions to stockholders — — — (54,975) (54,975)

Reclassification of additional paid-in capital

Issuance of common stock under dividend reinvestment plan 435 4 1,874 — 1,878

Repurchases of common stock under dividend reinvestment program

Repurchases of common stock under dividend reinvestment plan (435) (4) (1,874) — (1,878)

Balance at September 30, 2020 140,961 $ 1,409 $ 1,487,774 $ (574,304) $ 914,879

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Distributions

4 unchanged sentences

As a result, if the Company’s Board of Directors declares a cash distribution, then the Company’s stockholders who have not “opted out” of the Company’s DRIP will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution.

If the Company’s shares are trading at a premium to net asset value, the Company typically issues new shares to implement the DRIP with such shares issued at the greater of the most recently computed net asset value per share of common stock or

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

95% of the current market price per share of common stock on the payment date for such distribution.

If the Company’s shares are trading at a discount to net asset value, the Company typically purchases shares in the open market in connection with the Company’s obligations under the DRIP.

4 unchanged sentences

The following table reflects the distributions per share that the Company has paid, including shares issued under the DRIP, on its common stock during the years ended September 30, 2020, 2019 and 2018:

Date Declared

Distribution (2)

November 19, 2018

December 17, 2018

December 28, 2018

$ 13.0 million

$ 0.4 million

February 1, 2019

March 15, 2019

March 29, 2019

June 14, 2019

June 28, 2019

August 2, 2019

September 13, 2019

September 30, 2019

Total for the year ended September 30, 2019

$ 52.2 million

$ 1.3 million

Date Declared

August 7, 2017

December 15, 2017

December 29, 2017

$ 17.3 million

$ 0.3 million

February 5, 2018

March 15, 2018

March 30, 2018

June 15, 2018

June 29, 2018

August 1, 2018

September 15, 2018

September 28, 2018

Total for the year ended September 30, 2018

$ 55.0 million

$ 1.4 million

Date Declared

August 3, 2016

October 14, 2016

October 31, 2016

$ 8.2 million

$ 0.4 million

August 3, 2016

November 15, 2016

November 30, 2016

October 18, 2016

December 15, 2016

December 30, 2016

October 18, 2016

January 13, 2017

January 31, 2017

October 18, 2016

February 15, 2017

February 28, 2017

February 6, 2017

March 15, 2017

March 31, 2017

February 6, 2017

June 15, 2017

June 30, 2017

February 6, 2017

September 15, 2017

September 29, 2017

Total for the year ended September 30, 2017

$ 62.5 million

$ 2.9 million

Date Declared Record Date Payment Date Amount

per Share Cash

Distribution DRIP Shares

Issued (1) DRIP Shares

November 12, 2019 December 13, 2019 December 31, 2019 $ 0.095 $ 12.9 million 87,747 $ 0.5 million

January 31, 2020 March 13, 2020 March 31, 2020 0.095 12.9 million 157,523 0.5 million

April 30, 2020 June 15, 2020 June 30, 2020 0.095 13.0 million 87,351 0.4 million

July 31, 2020 September 15, 2020 September 30, 2020 0.105 14.3 million 102,404 0.5 million

Total for the year ended September 30, 2020 $ 0.39 $ 53.1 million 435,025 $ 1.9 million

Date Declared Record Date Payment Date Amount

per Share Cash

Distribution (2) DRIP Shares

Issued (1) DRIP Shares

November 19, 2018 December 17, 2018 December 28, 2018 $ 0.095 $ 13.0 million 87,429 $ 0.4 million

February 1, 2019 March 15, 2019 March 29, 2019 0.095 13.1 million 59,603 0.3 million

May 3, 2019 June 14, 2019 June 28, 2019 0.095 13.1 million 61,093 0.3 million

August 2, 2019 September 13, 2019 September 30, 2019 0.095 13.1 million 61,205 0.3 million

Total for the year ended September 30, 2019 $ 0.38 $ 52.2 million 269,330 $ 1.3 million

Date Declared Record Date Payment Date Amount

per Share Cash

Distribution DRIP Shares

Issued (1) DRIP Shares

August 7, 2017 December 15, 2017 December 29, 2017 $ 0.125 $ 17.3 million 58,456 $ 0.3 million

February 5, 2018 March 15, 2018 March 30, 2018 0.085 11.5 million 122,884 0.5 million

May 3, 2018 June 15, 2018 June 29, 2018 0.095 13.0 million 87,283 0.4 million

August 1, 2018 September 15, 2018 September 28, 2018 0.095 13.2 million 34,575 0.2 million

Total for the year ended September 30, 2018 $ 0.40 $ 55.0 million 303,198 $ 1.4 million

(1) Shares were purchased on the open market and distributed.

2 unchanged sentences

There were no common stock offerings during the years ended September 30, 2020, 2019 and 2018.

Credit Facility

On November 30, 2017, the Company entered into a senior secured revolving credit facility (as amended and restated, the “Credit Facility”) pursuant to a Senior Secured Revolving Credit Agreement with the lenders party thereto, ING Capital LLC, as administrative agent, ING Capital LLC, JPMorgan Chase Bank, N.A.

and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

and joint bookrunners, and JPMorgan Chase Bank, N.A.

Credit Facility

and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A.

and Bank of America, N.A., as syndication agents.

1 unchanged sentence

The Credit Facility further allows the Company to request letters of credit from ING Capital LLC, as the issuing bank.

On February 25, 2019, the Company amended and restated the Credit Facility to increase the size of the facility from $600 million to $680 million (with an “accordion” feature that permits the Company, under certain circumstances, to increase the size of the facility up to $1.02 billion), extend the period during which the Company may make drawings from expiring on November 30, 2020 to expiring on February 25, 2023, extend the final maturity date from November 30, 2021 to February 25, 2024, and lower the interest rate margins (a) for LIBOR loans (which may be 1-, 2-, 3- or 6-month, at the Company’s option), from 2.75% to 2.25% or from 2.25% to 2.00% and (b) for alternate base rate loans, from 1.75% to 1.25% or from 1.25% to 1.00%, each depending on the Company’s senior debt coverage ratio.

Additionally, on April 1, 2019, the Company increased the size of the Credit Facility from $680 million to $700 million under the “accordion” feature.

As of September 30, 2019 , the Company was able to borrow up to $700 million under the Credit Facility.

During the year ended September 30, 2019 , the Company expensed $0.2 million of unamortized deferred financing costs related to the amendment of the Credit Facility.

As of September 30, 2020, (i) the size of the Credit Facility was $700 million (with an “accordion” feature that permits the Company, under certain circumstances, to increase the size of the facility to up to the greater of $800 million and the Company’s net worth (as defined in the Credit Facility) on the date of such increase), (ii) the period during which the Company may make drawings will expire on February 25, 2023 and the maturity date is February 25, 2024 and (iii) the interest rate margin for (a) LIBOR loans (which may be 1-, 2-, 3- or 6-month, at the Company’s option) was 2.00% (which can be increased up to 2.25%) and (b) alternate base rate loans was 1.00% (which can be increased up to 1.25%);

provided that the interest margin will increase to 2.75% and 1.75% for LIBOR loans and alternative base rate loans, respectively, if the Company’s stockholders’ equity is below $700 million, each depending on the Company’s senior debt coverage ratio.

The Credit Facility is secured by substantially all of the Company’s assets (excluding, among other things, investments held in and by certain subsidiaries of the Company or investments in certain portfolio companies of the Company) and guaranteed by certain subsidiaries of the Company.

As of September 30, 2019 , except for assets that were held by the Excluded Subsidiaries and certain other immaterial subsidiaries, substantially all of the Company's assets are pledged as collateral under the Credit Facility.

As of September 30, 2020, except for assets that were held by certain immaterial subsidiaries, substantially all of the Company's assets are pledged as collateral under the Credit Facility.

The Credit Facility requires the Company to, among other things, (i) make representations and warranties regarding the collateral as well as each of the Company’s portfolio companies’ businesses, (ii) agree to certain indemnification obligations, and (iii) comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including covenants related to:

(A) limitations on the incurrence of additional indebtedness and liens, (B) limitations on certain investments, (C) limitations on certain asset transfers and restricted payments, (D) maintaining a certain minimum stockholders’ equity, (E) maintaining a ratio of total assets (less total liabilities) to total indebtedness, of the Company and its subsidiaries (subject to certain exceptions), of not less than 1.65 to 1.00, (F) maintaining a ratio of consolidated EBITDA to consolidated interest expense, of the Company and its subsidiaries (subject to certain exceptions), of not less than (1) 2.0 to 1.0 through February 25, 2020 and (2) 2.25 to 1.00 thereafter, (G) maintaining a minimum liquidity and net worth, and (H) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries.

(A) limitations on the incurrence of additional indebtedness and liens, (B) limitations on certain investments, (C) limitations on certain asset transfers and restricted payments, (D) maintaining a certain minimum stockholders’ equity, (E) maintaining a ratio of total assets (less total liabilities) to total indebtedness, of the Company and its subsidiaries (subject to certain exceptions), of not less than 1.50 to 1.00, (F) maintaining a ratio of consolidated EBITDA to consolidated interest expense, of the Company and its subsidiaries (subject to certain exceptions), of not less than 2.25 to 1.00, (G) maintaining a minimum liquidity and net worth, and (H) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries.

The Credit Facility also includes usual and customary default provisions such as the failure to make timely payments under the facility, the occurrence of a change in control, and the failure by the Company to materially perform under the agreements governing the facility, which, if not complied with, could accelerate repayment under the facility.

2 unchanged sentences

Each loan or letter of credit originated or assumed under the Credit Facility is subject to the satisfaction of certain conditions.

As of September 30, 2019 and 2018, the Company had $314.8 million and $241.0 million of borrowings outstanding under the Credit Facility, respectively, which had a fair value of $314.8 million and $241.0 million , respectively.

The Company's borrowings under the Credit Facility bore interest at a weighted average interest rate of 4.550% and 4.254% for the year ended September 30, 2019 and the period from November 30, 2017 to September 30, 2018, respectively.

The Company’s borrowings under the Prior ING Facility (as defined below) bore interest at a weighted average interest rate of 3.705% and 3.191% for the period from October 1, 2017 to November 30, 2017 and the year ended September 30, 2017, respectively.

For the years ended September 30, 2019 , 2018 and 2017, the Company recorded interest expense of $17.1 million , $11.6 million and $13.6 million in the aggregate, related to the Prior ING Facility and the Credit Facility.

As of September 30, 2020 and September 30, 2019, the Company had $414.8 million and $314.8 million of borrowings outstanding under the Credit Facility, respectively, which had a fair value of $414.8 million and $314.8 million, respectively.

The Company's borrowings under the Credit Facility bore interest at a weighted average interest rate of 3.028% and 4.550% for the years ended September 30, 2020 and 2019, respectively.

The Company's borrowings under the Credit Facility bore interest at a weighted average interest rate of 4.254% for the period from November 30, 2017 to September 30, 2018.

The Company’s borrowings under the Prior ING Facility (as defined below) bore interest at a weighted average interest rate of 3.705% for the period from October 1, 2017 to November 30, 2017.

For the years ended September 30, 2020, 2019 and 2018, the Company recorded interest expense (inclusive of fees) of $14.9 million, $17.1 million and $11.6 million, respectively, related to the Credit Facility.

From May 27, 2010 through November 30, 2017, the Company was party to a secured syndicated revolving credit facility with certain lenders party thereto from time to time and ING Capital LLC, as administrative agent (as amended, the “Prior ING Facility”).

In connection with the entry into the Credit Facility, the Company repaid all outstanding borrowings under the Prior ING Facility following which the Prior ING Facility was terminated.

Obligations under the Prior ING Facility would have otherwise matured on August 6, 2018.

Obligations under the Prior ING Facility would have

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

otherwise matured on August 6, 2018.

During the year ended September 30, 2018, the Company expensed $0.2 million of unamortized deferred financing costs related to the Prior ING Facility.

On February 25, 2020, the Company issued $300.0 million in aggregate principal amount of the 2025 Notes for net proceeds of $293.8 million after deducting OID of $2.5 million, underwriting commissions and discounts of $3.0 million and offering costs of $0.7 million.

The OID on the 2025 Notes is amortized based on the effective interest method over the term of the 2025 Notes.

The 2025 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the fifth supplemental indenture, dated February 25, 2020 (collectively, the "2025 Notes Indenture"), between the Company and Deutsche Bank Trust Company Americas (the "Trustee").

The 2025 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2025 Notes.

The 2025 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated.

The 2025 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness.

The 2025 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

Interest on the 2025 Notes is paid semi-annually on February 25 and August 25 at a rate of 3.500% per annum.

The 2025 Notes mature on February 25, 2025 and may be redeemed in whole or in part at any time or from time to time at the Company's option prior to maturity at par plus a “make-whole” premium, if applicable.

In addition, holders of the 2025 Notes can require the Company to repurchase the 2025 Notes at 100% of their principal amount upon the occurrence of certain change of control events as described in the 2025 Notes Indenture.

The 2025 Notes were issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

From issuance through September 30, 2020, the Company did not repurchase any of the 2025 Notes in the open market.

The 2025 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) and (2) of the Investment Company Act or any successor provisions (but giving effect to any exemptive relief granted to the Company by the U.S.

Securities and Exchange Commission ("SEC")), as well as covenants requiring the Company to provide financial information to the holders of the 2025 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

These covenants are subject to limitations and exceptions that are described in the 2025 Notes Indenture.

For the year ended September 30, 2020, the Company recorded interest expense (inclusive of fees) of $7.0 million related to the 2025 Notes.

As of September 30, 2020, there were $300.0 million of 2025 Notes outstanding, which had a carrying value and fair value of $294.5 million and $301.4 million, respectively.

The carrying value represents the aggregate principal amount outstanding less unamortized deferred financing costs and the unaccreted discount recorded upon the issuance of the 2025 Notes.

As of September 30, 2020, the total unamortized deferred financing costs and the net unaccreted discount were $3.3 million and $2.2 million, respectively.

On February 26, 2014, the Company issued $250.0 million in aggregate principal amount of its 4.875% unsecured notes due 2019 (the "2019 Notes") for net proceeds of $244.4 million after deducting OID of $1.4 million, underwriting commissions and discounts of $3.7 million and offering costs of $0.5 million.

The OID on the 2019 Notes was amortized based on the effective interest method over the term of the notes.

The 2019 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the third supplemental indenture, dated February 26, 2014, between the Company and the Trustee.

Interest on the 2019 Notes was paid semi-annually on March 1 and September 1 at a rate of 4.875% per annum.

As of each of September 30, 2020 and September 30, 2019, there were no 2019 Notes outstanding.

During the year ended September 30, 2018, the Company repurchased and subsequently canceled $21.2 million of the 2019 Notes.

The Company recognized a loss of $0.1 million in connection with such transaction.

The 2019 Notes matured on March 1, 2019 and were fully repaid.

For the years ended September 30, 2019 and 2018, the Company recorded interest expense of $5.1 million and $12.6 million (inclusive of fees), respectively, related to the 2019 Notes.

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Sumitomo Facility

On September 16, 2011, a consolidated wholly-owned bankruptcy remote, special purpose subsidiary of the Company entered into a Loan and Servicing Agreement with respect to a credit facility (as amended, "Sumitomo Facility") with Sumitomo Mitsui Banking Corporation, as administrative agent, and each of the lenders from time to time party thereto.

Prior to its termination on November 24, 2017, the Sumitomo Facility permitted up to $125 million of borrowings (subject to collateral requirements).

Borrowings under the Sumitomo Facility bore interest at a rate of either (i) LIBOR (1-month) plus 2.00% per annum, with no LIBOR floor, if the borrowings under the Sumitomo Facility were greater than 35% of the aggregate available borrowings under the Sumitomo Facility or (ii) LIBOR (1-month) plus 2.25% per annum, if the borrowings under the Sumitomo Facility were less than or equal to 35% of the aggregate available borrowings under the Sumitomo Facility.

The period during which the Company could have made and reinvested borrowings under the Sumitomo Facility expired on September 16, 2017.

On November 24, 2017, the borrower under the Sumitomo Facility, repaid all outstanding borrowings thereunder, following which the Sumitomo Facility was terminated.

Obligations under the Sumitomo Facility would have otherwise matured on the earlier of August 6, 2018 or the date on which the Prior ING Facility was repaid, refinanced or terminated.

As of September 30, 2019 and September 30, 2018 , there were no borrowings outstanding under the Sumitomo Facility.

The Company's borrowings under the Sumitomo Facility bore interest at a weighted average interest rate of 3.501% and 3.108% for the period from October 1, 2017 through termination on November 24, 2017, and the year ended September 30, 2017, respectively.

For the year ended September 30, 2018 , the Company recorded interest expense of $0.7 million, including $0.5 million of debt issuance costs that were expensed, related to the Sumitomo Facility.

For the year ended September 30, 2017, the Company recorded interest expense of $2.4 million related to the Sumitomo Facility.

See Notes 13 through 14 for discussion of additional debt obligations of the Company.

On October 18, 2012, the Company issued $75.0 million in aggregate principal amount of the 2024 Notes for net proceeds of $72.5 million after deducting underwriting commissions of $2.2 million and offering costs of $0.3 million.

The 2024 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the first supplemental indenture, dated October 18, 2012, between the Company and the Trustee.

Interest on the 2024 Notes was paid quarterly in arrears on January 30, April 30, July 30 and October 30 at a rate of 5.875% per annum.

On March 2, 2020, the Company redeemed 100%, or $75.0 million aggregate principal amount, of the issued and outstanding 2024 Notes, following which they were delisted from the New York Stock Exchange.

The redemption price per 2024 Note was $25 plus accrued and unpaid interest.

The Company recognized a loss of $1.0 million in connection with the redemption of the 2024 Notes during the year ended September 30, 2020.

For the year ended September 30, 2020, the Company recorded interest expense of $1.9 million (inclusive of fees) related to the 2024 Notes.

For each of the years ended September 30, 2019 and 2018, the Company recorded interest expense of $4.6 million (inclusive of fees) related to the 2024 Notes.

As of September 30, 2020, there were no 2024 Notes outstanding.

As of September 30, 2019, there were $75.0 million of 2024 Notes outstanding, which had a carrying value and fair value of $73.9 million and $77.4 million, respectively.

In April and May 2013, the Company issued $86.3 million in aggregate principal amount of the 2028 Notes for net proceeds of $83.4 million after deducting underwriting commissions of $2.6 million and offering costs of $0.3 million.

The 2028 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the second supplemental indenture, dated April 4, 2013, between the Company and the Trustee.

Interest on the 2028 Notes was paid quarterly in arrears on January 30, April 30, July 30 and October 30 at a rate of 6.125% per annum.

On March 13, 2020, the Company redeemed 100%, or $86.3 million aggregate principal amount, of the issued and outstanding 2028 Notes, following which they were delisted from the Nasdaq Global Select Market.

The redemption price per 2028 Note was $25 plus accrued and unpaid interest.

The Company recognized a loss of $1.5 million in connection with the redemption of the 2028 Notes during the year ended September 30, 2020.

For the year ended September 30, 2020, the Company recorded interest expense of $2.5 million (inclusive of fees) related to the 2028 Notes.

For each of the years ended September 30, 2019 and 2018, the Company recorded interest expense of $5.5 million (inclusive of fees) related to the 2028 Notes.

As of September 30, 2020, there were no 2028 Notes outstanding.

As of September 30, 2019, there were $86.3 million of 2028 Notes outstanding, which had a carrying value and fair value of $84.6 million and $87.6 million, respectively.

Secured Borrowings

As of September 30, 2020 and 2019, there were no secured borrowings outstanding.

During the year ended September 30, 2019, $7.2 million of secured borrowings were extinguished in exchange for $7.2 million of preferred stock in C5 Technology Holdings, LLC, which was restructured during the year.

For the years ended September 30, 2019 and 2018, the Company recorded interest expense of $0.1 million and $0.7 million, respectively, related to the secured borrowings.

For the years ended September 30, 2019 and 2018, the Company recorded unrealized appreciation (depreciation) on secured borrowings of $(2.7) million, $2.4 million respectively.

For the year ended September 30, 2019, the Company recorded a realized gain of $2.6 million as a result of the extinguishment of secured borrowings in connection with the C5 Technology Holdings, LLC restructuring.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Principal Payments

1 unchanged sentence

Payments due during fiscal years ended September 30,

2024 and Thereafter

Total 2021 2022 2023 2024 2025 and Thereafter

Credit Facility $ 414,825 $ — $ — $ — $ 414,825 $ —

2025 Notes 300,000 — — — — 300,000

Total $ 714,825 $ — $ — $ — $ 414,825 $ 300,000

Interest and Dividend Income

As of September 30, 2019 and September 30, 2018 , there were three and eight investments, respectively, on which the Company had stopped accruing cash and/or PIK interest or OID income.

As of September 30, 2020 and September 30, 2019, there were two and three investments, respectively, on which the Company had stopped accruing cash and/or PIK interest or OID income.

The percentages of the Company's debt investments at cost and fair value by accrual status as of September 30, 2020 and September 30, 2019 were as follows:

September 30, 2019

September 30, 2018

September 30, 2020 September 30, 2019

Cost % of Debt

Portfolio Fair

Value % of Debt

Portfolio Cost % of Debt

Portfolio Fair

Value % of Debt

Accrual $ 1,500,364 98.79 % $ 1,483,284 99.89 % $ 1,311,849 95.72 % $ 1,305,718 99.79 %

PIK non-accrual (1) 12,661 0.83 — — 12,661 0.92 — —

Cash non-accrual (2) 5,712 0.38 1,571 0.11 46,107 3.36 2,706 0.21

Total $ 1,518,737 100.00 % $ 1,484,855 100.00 % $ 1,370,617 100.00 % $ 1,308,424 100.00 %

___________________

1 unchanged sentence

(2) Cash non-accrual status is inclusive of PIK and other non-cash income, where applicable.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Taxable/Distributable Income and Dividend Distributions

10 unchanged sentences

September 30,

2020 Year ended

September 30,

2019 Year ended

September 30,

1 unchanged sentence

Net unrealized (appreciation) depreciation 20,614 (38,457) (102,605)

Book/tax difference due to loan fees

Book/tax differences due to exit fees

Book/tax difference due to organizational costs (87) (87) (87)

3 unchanged sentences

Taxable/Distributable Income (1) $ 54,362 $ 64,264 $ 38,702

(1) The Company's taxable income for the year ended September 30, 2019 is an estimate and will not be finally determined until the Company files its tax return for the fiscal year ending September 30, 2019 .

(1) The Company's taxable income for the year ended September 30, 2020 is an estimate and will not be finally determined until the Company files its tax return for the fiscal year ended September 30, 2020.

Therefore, the final taxable income may be different than the estimate.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The Company uses the liability method to account for its taxable subsidiaries' income taxes.

2 unchanged sentences

The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.

When assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized.

In determining whether the deferred tax assets are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, and tax liabilities for the tax jurisdiction in which the tax asset is located.

The deferred tax asset recognized by the Company, as it relates to the higher tax basis in the carrying value of certain assets compared to the book basis of those assets, will be recognized in future years by these taxable entities.

Deferred tax assets are based on the amount of the tax benefit that the Company’s management has determined is more likely than not to be realized in future periods.

In determining the realizability of this tax benefit, management considered numerous factors that will give rise to pre-tax income in future periods.

Among these are the historical and expected future book and tax basis pre-tax income of the Company and unrealized gains in the Company’s assets at the determination date.

Based on these and other factors, the Company determined that, as of September 30, 2020, $3.0 million of $3.8 million net deferred tax assets would not more likely than not be realized in future periods.

As of September 30, 2020, the Company recorded a deferred tax asset of $0.8 million on the Consolidated Statements of Assets and Liabilities.

For the year ended September 30, 2020, the Company recognized a total provision for income tax benefit of $1.8 million, which was comprised of (i) a current income tax benefit of approximately $0.2 million, and (ii) a deferred income tax benefit of approximately $1.6 million, which resulted from unrealized depreciation on investments held by the Company’s wholly-owned taxable subsidiaries.

For the year ended September 30, 2019, the Company recognized a total provision for income taxes of $1.0 million, which was comprised of (i) current income tax expense of approximately $0.7 million, primarily as a result of realized gains on investments held by the Company's wholly-owned taxable subsidiaries, net of return to provision adjustments, and (ii) deferred income tax expense of approximately $0.3 million, which resulted from unrealized appreciation on investments held by the Company’s wholly-owned taxable subsidiaries.

2 unchanged sentences

These reclassification entries did not impact total net assets.

For the year ended September 30, 2018, the Company reclassified $86.5 million of additional paid-in-capital to accumulated overdistributed earnings on the Consolidated Statement of Assets and Liabilities to reflect expired capital loss carryforwards and

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

distributions that were deemed to be a return of capital for income tax purposes.

Of the $86.5 million, $68.8 million relates to distributions and expired capital loss carryforwards that occurred prior to September 30, 2017.

These reclassification entries did not impact total net assets.

As of September 30, 2020, the Company's last tax year end, the components of accumulated overdistributed earnings on a tax basis were as follows:

6 unchanged sentences

Net unrealized depreciation based on the aggregate cost of investments for income tax purposes was $68.4 million.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Realized Gains or Losses and Net Unrealized Appreciation or Depreciation

2 unchanged sentences

Realized losses may also be recorded in connection with the Company's determination that certain investments are considered worthless securities and/or meet the conditions for loss recognition per the applicable tax rules.

During the year ended September 30, 2020, the Company recorded an aggregate net realized loss of $13.9 million, which consisted of the following:

($ in millions)

Portfolio Company Net Realized Gain (Loss)

Cenegenics, LLC

Dominion Diagnostics, LLC

Thruline Marketing Inc.

Covia Holdings Corporation

YETI Holdings, Inc.

Sorrento Therapeutics, Inc.

Lytx Holdings, LLC

Goodrx Holdings Inc.

HealthEdge Software, Inc.

During the year ended September 30, 2019, the Company recorded an aggregate net realized gain of $20.8 million, which consisted of the following:

($ in millions)

Portfolio Company

Net Realized Gain (Loss)

Portfolio Company Net Realized Gain (Loss)

Maverick Healthcare Group, LLC

12 unchanged sentences

($ in millions)

Portfolio Company

Net Realized Gain (Loss)

Portfolio Company Net Realized Gain (Loss)

Ameritox Ltd.

2 unchanged sentences

Metamorph US 3, LLC

During the year ended September 30, 2017, the Company recorded an aggregate net realized loss of $171.8 million, which consisted of the following:

($ in millions)

Portfolio Company

Net Realized Gain (Loss)

AdVenture Interactive, Corp.

Answers Corporation

ERS Acquisition Corp.

Express Group Holdings LLC

Senior Loan Fund JV I, LLC

Eagle Hospital Physicians, LLC

Integrated Petroleum Technologies, Inc.

First Star Aviation, LLC

Dexter Axle Company

Vandelay Industries Merger Sub, Inc.

Net Unrealized Appreciation or Depreciation

Net unrealized appreciation or depreciation reflects the net change in the valuation of the portfolio pursuant to the Company's valuation guidelines and the reclassification of any prior period unrealized appreciation or depreciation.

During the three years ended September 30, 2019 , 2018 and 2017, the Company recorded net unrealized appreciation (depreciation) of $38.5 million , $102.6 million and $(97.8) million, respectively.

During the years ended September 30, 2020, 2019 and 2018, the Company recorded net unrealized appreciation (depreciation) of $(20.6) million, $38.5 million and $102.6 million, respectively.

For the year ended September 30, 2020, this consisted of $35.3 million of net unrealized depreciation on equity investments, $12.0 million of net unrealized depreciation on debt investments and $0.3 million of net unrealized depreciation of foreign currency forward contracts, partially offset by $26.9 million of net unrealized appreciation related to exited investments (a portion of which resulted in a reclassification to realized losses).

For the year ended September 30, 2019, this consisted of $57.0 million of net unrealized appreciation related to exited investments (a portion of which results in a reclassification to realized losses), $10.6 million of net unrealized appreciation on equity investments and $0.3 million net unrealized appreciation of foreign currency forward contracts, partially offset by $26.8 million of net unrealized depreciation on debt investments and $2.7 million of net unrealized depreciation of secured borrowings (which results in a reclassification to realized gains).

For the year ended September 30, 2018, this consisted of $127.4 million of net unrealized appreciation related to exited investments (a portion of which results in a reclassification to realized losses), $2.4 million of net unrealized appreciation on secured borrowings and $2.2 million of net unrealized appreciation on equity investments, offset by $29.4 million of net unrealized depreciation on debt investments.

For the year ended September 30, 2017, this consisted of $163.4 million of net unrealized depreciation on debt investments, $93.1 million of net unrealized depreciation on equity investments and $0.3 million of net unrealized depreciation on secured borrowings, offset by $159.0 million of net unrealized appreciation related to exited investments (a portion of which results in a reclassification to realized losses).

Concentration of Credit Risks

1 unchanged sentence

The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring their financial stability.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Related Party Transactions

As of September 30, 2019 and September 30, 2018 , the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $10.2 million and $8.2 million , respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree.

As of September 30, 2020 and September 30, 2019, the Company had a liability on its Consolidated Statements of Assets and Liabilities in the amount of $11.2 million and $10.2 million, respectively, reflecting the unpaid portion of the base management fees and incentive fees payable to Oaktree and OCM, as applicable.

Investment Advisory Agreement

Effective October 17, 2017 and as of September 30, 2019 , the Company is party to the Investment Advisory Agreement.

The Company is party to the Investment Advisory Agreement.

Under the Investment Advisory Agreement, the Company pays Oaktree a fee for its services under the Investment Advisory Agreement consisting of two components:

1 unchanged sentence

The cost of both the base management fee payable to Oaktree and any incentive fees earned by Oaktree is ultimately borne by common stockholders of the Company.

From October 17, 2017 through May 3, 2020, the Company was externally managed by OCM pursuant to an investment advisory agreement.

On May 4, 2020, OCM effected the novation of such investment advisory agreement to Oaktree.

Immediately following such novation, the Company and Oaktree entered into a new investment advisory agreement with the same terms, including fee structure, as the investment advisory agreement with OCM.

The term “Investment Advisory Agreement” refers collectively to the agreements with Oaktree and, prior to its novation, with OCM.

Prior to October 17, 2017, the Company was externally managed by Fifth Street Management LLC (the "Former Adviser”),

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

an indirect, partially-owned subsidiary of Fifth Street Asset Management Inc., pursuant to an investment advisory agreement between the Company and the Former Adviser (the "Former Investment Advisory Agreement"), which was terminated on October 17, 2017.

Unless earlier terminated as described below, the Investment Advisory Agreement will remain in effect until September 30, 2021 and thereafter from year-to-year if approved annually by the Board of Directors of the Company or by the affirmative vote of the holders of a majority of the Company’s outstanding voting securities, including, in either case, approval by a majority of the directors of the Company who are not interested persons.

5 unchanged sentences

The base management fee is payable quarterly in arrears and the fee for any partial month or quarter is appropriately prorated.

Effective May 3, 2019, base management fee on the Company’s gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents, that exceed the product of (A) 200% and (B) the Company’s net asset value will be 1.00%.

For the avoidance of doubt, the 200% will be calculated in accordance with the Investment Company Act and will give effect to exemptive relief the Company received from the U.S.

Securities and Exchange Commission with respect to debentures issued by a small business investment company subsidiary.

For the year ended September 30, 2019 , the base management fee (net of waivers) incurred under the Investment Advisory Agreement was $22.2 million , which was payable to Oaktree.

For the period from October 17, 2017 to September 30, 2018 , the base management fee (net of waivers) incurred under the Investment Advisory Agreement was $21.4 million, which was payable to Oaktree.

Effective May 3, 2019, the base management fee on the Company’s gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents, that exceed the product of (A) 200% and (B) the Company’s net asset value will be 1.00%.

For the avoidance of doubt, the 200% will be calculated in accordance with the Investment Company Act and will give effect to exemptive relief the Company received from the SEC with respect to debentures issued by a small business investment company subsidiary.

For the years ended September 30, 2020 and 2019, the base management fee (net of waivers) incurred under the Investment Advisory Agreement was $22.9 million and $22.2 million, respectively, which was payable to Oaktree or OCM, as applicable.

For the period from October 17, 2017 to September 30, 2018, the base management fee (net of waivers) incurred under the Investment Advisory Agreement was $21.4 million, which was payable to OCM.

For the period from October 1, 2017 to October 17, 2017, the base management fee (net of waivers) incurred under the Former Investment Advisory Agreement with the Former Adviser was $1.1 million, which was payable to the Former Adviser.

Incentive Fee

6 unchanged sentences

Under the Investment Advisory Agreement, the calculation of the incentive fee on income for each quarter is as follows:

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

• No incentive fee is payable to Oaktree in any quarter in which the Company’s pre-incentive fee net investment income does not exceed the preferred return rate of 1.50% (the “preferred return”) on net assets;

1 unchanged sentence

This portion of the incentive fee on income is referred to as the “catch-up” provision, and it is intended to provide Oaktree with an incentive fee of 17.5% on all of the Company’s pre-incentive fee net investment income when the Company’s pre-incentive fee net investment income exceeds 1.8182% on net assets in any fiscal quarter;

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

• For any quarter in which the Company’s pre-incentive fee net investment income exceeds 1.8182% on net assets, the incentive fee on income is equal to 17.5% of the amount of the Company’s pre-incentive fee net investment income, as the preferred return and catch-up will have been achieved.

There is no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle.

For the year ended September 30, 2019 , the first part of the incentive fee (incentive fee on income) incurred under the Investment Advisory Agreement was $14.9 million .

For the years ended September 30, 2020 and 2019, the first part of the incentive fee (incentive fee on income) incurred under the Investment Advisory Agreement was $15.2 million and $14.9 million, respectively.

For the period from October 17, 2017 to September 30, 2018, the first part of the incentive fee (incentive fee on income) incurred under the Investment Advisory Agreement was $10.5 million (prior to accrued waivers).

1 unchanged sentence

Any realized capital gains, realized capital losses, unrealized capital appreciation and unrealized capital depreciation with respect to the Company’s portfolio as of the end of the fiscal year ended September 30, 2018 are excluded from the calculations of the second part of the incentive fee.

The capital gains incentive fee payable under the Investment Advisory Agreement was $4.6 million (prior to accrued waivers) as of September 30, 2019 (see below for discussion of waivers).

For the year ended September 30, 2020, the Company did not incur any capital gains incentive fees under the Investment Advisory Agreement.

For the year ended September 30, 2019, the Company incurred $4.6 million of capital gains incentive fees under the Investment Advisory Agreement (prior to waivers).

GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized on a theoretical "liquidation basis." A fee so calculated and accrued would not be payable under applicable law and may never be paid based upon the computation of capital gains incentive fees in subsequent periods.

6 unchanged sentences

There can be no assurance that such unrealized capital appreciation will be realized in the future or any accrued capital gains incentive fee will become payable under the Investment Advisory Agreement.

For the year ended September 30, 2020, the Company reversed $5.6 million of previously accrued capital gains incentive fees.

For the year ended September 30, 2019, the Company recorded $10.2 million of accrued capital gains incentive fees (prior to waivers).

To ensure compliance of the transactions contemplated by the Purchase Agreement with Section 15(f) of the Investment Company Act, Oaktree entered into a two-year contractual fee waiver with the Company pursuant to which Oaktree will waive, to the extent necessary, any management or incentive fees payable under the Investment Advisory Agreement that exceed what would have been paid to the Former Adviser in the aggregate under the Former Investment Advisory Agreement.

Amounts potentially subject to waiver under the two-year contractual fee waiver are accrued quarterly on a cumulative basis and, to the extent required, any actual fee waiver will be reimbursed as soon as practicable after the end of the two-year period.

For the year ended September 30, 2019 , the Company accrued $7.9 million potentially subject to waiver, which included $9.1 million of waivers related to the capital gains incentive fee, offset by a $1.2 million reversal of waiver previously accrued related to the incentive fee on income.

For the year ended September 30, 2018 , the Company accrued $1.2 million potentially subject to waiver.

As of September 30, 2019 , the Company accrued $9.1 million of cumulative amounts subject to potential waiver, which was included in base management fee and incentive fee payable.

The Company did not have any cumulative accrued capital gains incentive fees payable as of September 30, 2020.

To ensure compliance with Section 15(f) of the Investment Company Act, OCM entered into a two-year contractual fee waiver with the Company, which ended on October 17, 2019, pursuant to which OCM waived any management or incentive fees payable under the Investment Advisory Agreement that exceeded what would have been paid to the Former Adviser in the aggregate under the Former Investment Advisory Agreement.

The contractual amount of fees permanently waived at the end of the two-year period was $3.9 million.

Prior to the end of the two-year period, amounts potentially subject to waiver under the two-year contractual fee waiver were accrued quarterly based on a theoretical “liquidation basis.” As of September 30, 2019, the Company had accrued cumulative fee waivers of $9.1 million.

During the year ended September 30, 2020, the Company reversed $5.2 million of previously accrued fee waivers since the two-year fee waiver period has ended.

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

waiver associated with the capital gains incentive fee is based on a theoretical "liquidation basis" and will differ materially from the amounts that are actually waived, if any, pursuant to the contractual fee waiver at the end of the two-year period, which is October 17, 2019.

Any cumulative accrued amounts subject to potential waiver that are not actually waived will be reversed in the quarter ended December 31, 2019, which as of September 30, 2019, would hypothetically be $5.6 million.

As of September 30, 2019, the capital gains incentive fee payable under the Investment Advisory Agreement (net of accrued waivers) is $1.1 million.

A summary of accrued capital gains incentive fees and related waivers as calculated in accordance with GAAP and in accordance with the Investment Advisory Agreement is shown below:

September 30, 2019

($ in millions)

Calculated in accordance with GAAP

Calculated in accordance with the Investment Advisory Agreement

Accrued capital gains incentive fee (prior to waivers)

Accrued waiver

Accrued capital gains incentive fee (net of waivers)

Waivers, if any, will ultimately be determined at the end of the two-year contractual fee waiver period, which ended on October 17, 2019, and will be finalized at the conclusion of the quarter ending December 31, 2019.

Therefore, the actual capital gains incentive fee payable under the Investment Advisory Agreement (and related waiver) will likely differ from the amounts disclosed as of September 30, 2019.

The following table provides an estimate of the impact of the expiration of the two-year contractual fee waiver on the accrued capital gain incentive fee:

The following table provides a roll-forward of the accrued waiver balance and illustrates the impact of the end of the two-year contractual fee waiver period:

($ in millions)

September 30, 2019

Accrued capital gains incentive fee waiver (based on GAAP) (1)

Accrued capital gains incentive fee waiver (based on the Investment Advisory Agreement) (2)

Potential reversal of accrued waiver (3)

(1) Calculated in accordance with GAAP and is based on a theoretical “liquidation basis” as of September 30, 2019.

(2) Calculated in accordance with the Investment Advisory Agreement and reflects the Company’s accrual for fees that will be waived during the quarter ending December 31, 2019.

(3) Reflects an estimate of the accrued waiver that will reverse in connection with the expiration of the two-year contractual fee waiver on October 17, 2019.

Any fee waiver reversal will be recognized during the quarter ending December 31, 2019.

Accrued fee waivers as of September 30, 2019 (1) $ 9.1

Reversal of previously accrued fee waivers (2) (5.2)

Contractual fees waived under the Investment Advisory Agreement (3) (3.9)

Accrued fee waivers as of September 30, 2020 $ —

(1) Calculated in accordance with GAAP as of September 30, 2019 and is based on a hypothetical liquidation basis.

(2) Reflects the reversal of fee waivers that were previously accrued based on a hypothetical liquidation basis when the two-year contractual fee waiver was in effect.

This reversal was recognized in connection with the expiration of the two-year contractual fee waiver, which ended on October 17, 2019, and is reflected in reversal of fees waived in the Consolidated Statement of Operations for the year ended September 30, 2020.

(3) Reflects the amount of fees permanently waived pursuant to the two-year contractual fee waiver.

As of September 30, 2019, the capital gains incentive fee payable under the Investment Advisory Agreement (net of waivers) was $0.8 million as shown below:

($ in millions) September 30, 2019 (1)

Capital gains incentive fee payable under the Investment Advisory Agreement (prior to waivers) $ 4.6

Contractual fees waived (3.9)

Capital gains incentive fee payable under the Investment Advisory Agreement (net of waivers) $ 0.8

(1) Amounts may not sum due to rounding.

Indemnification

The Investment Advisory Agreement provides that, absent willful misfeasance, bad faith or gross negligence in the performance of their respective duties or by reason of the reckless disregard of their respective duties and obligations, Oaktree and its officers, managers, partners, members (and their members, including the owners of their members), agents, employees, controlling persons and any other person or entity affiliated with it, are entitled to indemnification from the Company for any damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) arising from the rendering of Oaktree's services under the Investment Advisory Agreement or otherwise as investment adviser.

Collection and Disbursement of Fees Owed to the Former Adviser

Under the Former Investment Advisory Agreement described below, both the base management fee and incentive fee on income were calculated and paid to the Former Adviser at the end of each quarter.

In order to ensure that the Former Adviser received the compensation earned during the quarter ended December 31, 2017, the initial payment of the base management fee and incentive fee on income under the Investment Advisory Agreement covered the entire quarter in which the Investment Advisory Agreement became effective, and was calculated at a blended rate that reflected fee rates under the respective investment advisory agreements for the portion of the quarter in which the Former Adviser and Oaktree were serving as investment adviser.

This structure allowed Oaktree to pay the Former Adviser in early 2018, the pro rata portion of the fees that were earned by, but not paid to, the Former Adviser for services rendered to the Company prior to October 17, 2017.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Former Investment Advisory Agreement

The following is a description of investment advisory agreement between the Company and the Former Adviser (the "Former Investment Advisory Agreement"), which was terminated on October 17, 2017.

The Former Investment Advisory Agreement, dated March 20, 2017, was effective January 1, 2017 through its termination on October 17, 2017.

Through October 17, 2017, the Company paid the Former Adviser a fee for its services under the Former Investment Advisory Agreement consisting of two components:

a base management fee and an incentive fee.

The cost of both the base management fee paid to the Former Adviser and any incentive fees earned by the Former Adviser were ultimately borne by common stockholders of the Company.

Base Management Fee

From October 1, 2017 to October 17, 2017, the base management fee was calculated at an annual rate of 1.75% of the Company’s gross assets, including any borrowings for investment purposes but excluding cash and cash equivalents.

The base management fee was payable quarterly in arrears and the fee for any partial month or quarter was appropriately prorated.

For the period from October 1, 2017 to October 17, 2017 and the year ended September 30, 2017, the base management fee (net of waivers) incurred under the Former Investment Advisory Agreement with the Former Adviser was $1.1 million and $31.1 million, respectively, which was payable to the Former Adviser.

Incentive Fee

The incentive fee paid to the Former Adviser had two parts.

The first part was calculated and payable quarterly in arrears at a rate of 20% based on the Company’s pre-incentive fee net investment income for the immediately preceding fiscal quarter subject to a “hurdle rate” of 1.75% per quarter and a “catch-up” provision.

The Company’s net investment income used to calculate this part of the incentive fee was also included in the amount of its gross assets used to calculate the 1.75% base management fee.

In the event the cumulative incentive fee on income accrued from January 1, 2017 (after giving effect to any reduction(s) pursuant to this paragraph for any prior fiscal quarters but not the quarter of calculation) exceeded 20.0% of the cumulative net increase in net assets resulting from operations since January 1, 2017, then the incentive fee on income for the quarter was reduced by an amount equal to (1) 25% of the incentive fee on income calculated for such quarter (prior to giving effect to any reduction pursuant to this paragraph) less (2) any base management fees waived by the Former Adviser for such fiscal quarter.

For this purpose, the “cumulative net increase in net assets resulting from operations” was an amount, if positive, equal to the sum of pre-incentive fee net investment income, base management fees, realized gains and losses and unrealized capital appreciation and depreciation of the Company from January 1, 2017.

There was no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there was no clawback of amounts previously paid if subsequent quarters were below the quarterly hurdle and there was no delay of payment if prior quarters were below the quarterly hurdle.

The second part of the incentive fee was determined and payable in arrears as of the end of each fiscal year (or upon termination of the Former Investment Advisory Agreement, as of the termination date) and equaled 20% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of each fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees.

For the period from October 1, 2017 to October 17, 2017, no incentive fee was incurred under the Former Investment Advisory Agreement.

For the year ended September 30, 2017, incentive fees incurred under the investment advisory agreement with

the Former Adviser were $10.7 million (net of a $1.1 million reduction due to the total return hurdle).

Administrative Services

Effective October 17, 2017, the Company is party to the Administration Agreement with Oaktree Administrator.

The Company is party to the Administration Agreement with Oaktree Administrator.

Pursuant to the Administration Agreement, Oaktree Administrator provides administrative services to the Company necessary for the operations of the Company, which include providing office facilities, equipment, clerical, bookkeeping and record keeping services at such facilities and such other services as Oaktree Administrator, subject to review by the Company’s Board of Directors, shall from time to time deem to be necessary or useful to perform its obligations under the Administration Agreement.

Oaktree Administrator may, on behalf of the Company, conduct relations and negotiate agreements with custodians, trustees, depositories, attorneys, underwriters, brokers and

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable.

Oaktree Administrator may, on behalf of the Company, conduct relations and negotiate agreements with custodians, trustees, depositories, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable.

Oaktree Administrator makes reports to the Company’s Board of Directors of its performance of obligations under the Administration Agreement and furnishes advice and recommendations with respect to such other aspects of the Company’s business and affairs, in each case, as it shall determine to be desirable or as reasonably required by the Company’s Board of Directors;

3 unchanged sentences

Oaktree Administrator may also offer to provide, on the Company’s behalf, managerial assistance to the Company’s portfolio companies.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For providing these services, facilities and personnel, the Company reimburses Oaktree Administrator the allocable portion of overhead and other expenses incurred by Oaktree Administrator in performing its obligations under the Administration Agreement, including the Company’s allocable portion of the rent of the Company’s principal executive offices (which are located in a building owned by a Brookfield affiliate) at market rates and the Company’s allocable portion of the costs of compensation and related expenses of its Chief Financial Officer, Chief Compliance Officer, their staffs and other non-investment professionals at Oaktree that perform duties for the Company.

2 unchanged sentences

The Administration Agreement may also be terminated, without penalty, upon the vote of a majority of the Company’s outstanding voting securities.

Prior to its termination by its terms on October 17, 2017, the Company was party to the Former Administration Agreement with the Former Administrator.

The Former Administrator was a wholly-owned subsidiary of the Former Adviser.

Pursuant to the Former Administration Agreement, the Former Administrator provided services substantially similar to those provided by Oaktree Administrator as described above.

For providing these services, facilities and personnel, the Company reimbursed the Former Administrator the allocable portion of overhead and other expenses incurred by it in performing its obligations under the Former Administration Agreement.

For the year ended September 30, 2019 , the Company accrued administrative expenses of $2.3 million , including $0.3 million of general and administrative expenses.

For the year ended September 30, 2018 , the Company accrued administrative expenses of $2.1 million, including $0.4 million of general and administrative expenses.

For the years ended September 30, 2020, 2019 and 2018, the Company accrued administrative expenses of $1.8 million, $2.3 million and $2.1 million, respectively, including $0.3 million, $0.3 million and $0.4 million of general and administrative expenses, respectively.

Of the accrued administrative expenses of $2.1 million for the year ended September 30, 2018, $0.2 million was due to the Former Administrator for administrative expenses incurred prior to October 17, 2017 and $1.9 million was due to Oaktree Administrator.

For the year ended September 30, 2017, the Company accrued administrative expenses of $4.3 million, including $2.1 million of general and administrative expenses, which was due to the Former Administrator.

As of September 30, 2019 and September 30, 2018 , $2.7 million and $3.3 million was included in “Due to affiliate” in the Consolidated Statements of Assets and Liabilities, respectively, reflecting the unpaid portion of administrative expenses and other reimbursable expenses payable to Oaktree Administrator.

As of September 30, 2020 and September 30, 2019, $2.1 million and $2.7 million, respectively, was included in “Due to affiliate” in the Consolidated Statements of Assets and Liabilities, reflecting the unpaid portion of administrative expenses and other reimbursable expenses payable to Oaktree Administrator.

OAKTREE SPECIALTY LENDING CORPORATION

2 unchanged sentences

Financial Highlights

(Share amounts in thousands)

(Share amounts in thousands) Year ended

September 30,

2020 Year ended

September 30,

2019 Year ended

September 30,

2018 (1) Year ended

September 30,

2017 Year ended

September 30,

3 unchanged sentences

Net realized gains (losses) (2) (0.10) 0.14 (0.83) (1.21) (0.84)

Distributions to stockholders

Provision for income tax (expense) benefit (2) 0.01 — — — —

Distributions of net investment income to stockholders (0.39) (0.38) (0.27) (0.47) (0.67)

Tax return of capital — — (0.13) — (0.05)

16 unchanged sentences

Asset coverage ratio at end of period (6) 227.22% 294.91% 232.98% 227.40% 220.84%

Beginning on October 17, 2017, the Company is externally managed by Oaktree.

(1) Beginning on October 17, 2017, the Company is externally managed by Oaktree or its affiliates.

Prior to October 17, 2017, the Company was externally managed by the Former Adviser.

1 unchanged sentence

(3) Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming dividend reinvestment prices obtained under the Company's DRIP.

Total return does not include sales load.

(4) Calculated based upon the weighted average net assets for the period.

7 unchanged sentences

We had no senior securities outstanding as of September 30 of any prior fiscal years prior to those indicated below.

Class and Year(1)

Total Amount Outstanding Exclusive of Treasury Securities (2)

Asset Coverage Per Unit(3)

Involuntary Liquidating Preference Per Unit(4)

Average Market Value Per Unit(5)

Class and Year(1) Total Amount Outstanding Exclusive of Treasury Securities (2) Asset Coverage Per Unit(3) Involuntary Liquidating Preference Per Unit(4) Average Market Value Per Unit(5)

Credit Facility and Prior ING Facility

Fiscal 2011 $ 133,500 3,328 — N/A

Fiscal 2012 141,000 3,857 — N/A

Fiscal 2013 168,000 3,949 — N/A

Fiscal 2014 267,395 2,595 — N/A

Fiscal 2015 383,495 2,389 — N/A

Fiscal 2016 472,495 2,208 — N/A

Fiscal 2017 226,495 2,274 — N/A

Fiscal 2018 241,000 2,330 — N/A

Fiscal 2019 314,825 2,949 — N/A

Fiscal 2020 414,825 2,272 — N/A

Wells Fargo Facility

Fiscal 2011 $ 39,524 3,328 — N/A

Fiscal 2012 60,251 3,857 — N/A

Fiscal 2013 20,000 3,949 — N/A

Sumitomo Facility

Fiscal 2011 $ 5,000 3,328 — N/A

Fiscal 2012 — 3,857 — N/A

Fiscal 2013 — 3,949 — N/A

Fiscal 2014 50,000 2,595 — N/A

Fiscal 2015 43,800 2,389 — N/A

Fiscal 2016 43,800 2,208 — N/A

Fiscal 2017 29,500 2,274 — N/A

Convertible Notes

Fiscal 2011 $ 135,000 3,328 — N/A

Fiscal 2012 115,000 3,857 — N/A

Fiscal 2013 115,000 3,949 — N/A

Fiscal 2014 115,000 2,595 — N/A

Fiscal 2015 115,000 2,389 — N/A

Secured Borrowings

Fiscal 2014 $ 84,750 2,595 — N/A

Fiscal 2015 21,787 2,389 — N/A

Fiscal 2016 18,929 2,208 — N/A

Fiscal 2017 13,489 2,274 — N/A

Fiscal 2018 12,314 2,330 — N/A

OAKTREE SPECIALTY LENDING CORPORATION

1 unchanged sentence

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Class and Year(1)

Total Amount Outstanding Exclusive of Treasury Securities (in thousands)(2)

Asset Coverage Per Unit(3)

Involuntary Liquidating Preference Per Unit(4)

Average Market Value Per Unit(5)

Class and Year(1) Total Amount Outstanding Exclusive of Treasury Securities (in thousands)(2) Asset Coverage Per Unit(3) Involuntary Liquidating Preference Per Unit(4) Average Market Value Per Unit(5)

Fiscal 2014 $ 250,000 2,595 — N/A

Fiscal 2015 250,000 2,389 — N/A

Fiscal 2016 250,000 2,208 — N/A

Fiscal 2017 250,000 2,274 — N/A

Fiscal 2018 228,825 2,330 — N/A

Fiscal 2013 $ 75,000 3,949 — 979.45

Fiscal 2014 75,000 2,595 — 966.96

Fiscal 2015 75,000 2,389 — 991.94

Fiscal 2016 75,000 2,208 — 993.70

Fiscal 2017 75,000 2,274 — 1,006.74

Fiscal 2018 75,000 2,330 — 1,010.72

Fiscal 2019 75,000 2,949 — 1,012.76

Fiscal 2020 $ 300,000 2,272 — N/A

Fiscal 2013 $ 86,250 3,949 — 957.21

Fiscal 2014 86,250 2,595 — 943.73

Fiscal 2015 86,250 2,389 — 988.06

Fiscal 2016 86,250 2,208 — 999.29

Fiscal 2017 86,250 2,274 — 1,007.51

Fiscal 2018 86,250 2,330 — 994.82

Fiscal 2019 86,250 2,949 — 993.33

Total Senior Securities

Fiscal 2011 $ 313,024 3,328 —

Fiscal 2012 316,251 3,857 —

Fiscal 2013 464,250 3,949 —

Fiscal 2014 928,395 2,595 —

Fiscal 2015 975,332 2,389 —

Fiscal 2016 946,474 2,208 —

Fiscal 2017 680,734 2,274 —

Fiscal 2018 643,389 2,330 —

Fiscal 2019 476,075 2,949 —

Fiscal 2020 714,825 2,272 —

(1) This table excludes any SBA-guaranteed debentures outstanding during the relevant periods because the SEC has granted the Company exemptive relief that permits us to exclude such debentures from the definition of senior securities in the asset coverage ratio the Company is required to maintain under the Investment Company Act.

(2) Total amount of each class of senior securities outstanding at the end of the period, presented in thousands.

The asset coverage ratio for a class of senior securities representing indebtedness is calculated as the Company's consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by total senior securities representing indebtedness.

(3) The asset coverage ratio for a class of senior securities representing indebtedness is calculated as the Company's consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by total senior

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

securities representing indebtedness.

This asset coverage ratio is multiplied by $1,000 to determine the “Asset Coverage Per Unit.”

5 unchanged sentences

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Unsecured Notes

On February 26, 2014, the Company issued $250.0 million in aggregate principal amount of its 4.875% unsecured 2019 Notes for net proceeds of $244.4 million after deducting OID of $1.4 million, underwriting commissions and discounts of $3.7 million and offering costs of $0.5 million.

The OID on the 2019 Notes was amortized based on the effective interest method over the term of the notes.

The 2019 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the supplemental indenture, dated

February 26, 2014 (collectively, the "2019 Notes Indenture"), between the Company and Deutsche Bank Trust Company Americas (the "Trustee").

The 2019 Notes are the Company's general unsecured obligations that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2019 Notes.

The 2019 Notes rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated.

The 2019 Notes effectively rank junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness.

The 2019 Notes rank structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities.

Interest on the 2019 Notes was paid semi-annually on March 1 and September 1 at a rate of 4.875% per annum.

During the year ended September 30, 2018 , the Company repurchased and subsequently canceled $21.2 million of the 2019 Notes.

The Company recognized a loss of $0.1 million in connection with such transaction.

The 2019 Notes matured on March 1, 2019 and were fully repaid during the year ended September 30, 2019 .

For the years ended September 30, 2019 , 2018 and 2017, the Company recorded interest expense of $5.1 million , $12.6 million and $13.3 million, respectively, related to the 2019 Notes.

As of September 30, 2019 , there were no 2019 Notes outstanding.

As of September 30, 2018 , there were $228.8 million of 2019 Notes outstanding, which had a carrying value and fair value of $228.3 million and $230.5 million , respectively.

On October 18, 2012, the Company issued $75.0 million in aggregate principal amount of its 5.875% unsecured 2024 Notes for net proceeds of $72.5 million after deducting underwriting commissions of $2.2 million and offering costs of $0.3 million.

The 2024 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the first supplemental indenture, dated October 18, 2012 (collectively, the "2024 Notes Indenture"), between the Company and Deutsche Bank Trust Company Americas (the "Trustee").

The 2024 Notes are the Company's unsecured obligations and rank senior in right of payment to the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2024 Notes;

equal in right of payment to the Company's existing and future unsecured indebtedness that is not so subordinated;

effectively junior in right of payment to any of the Company's secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness;

and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries or financing vehicles.

Interest on the 2024 Notes is paid quarterly in arrears on January 30, April 30, July 30 and October 30 at a rate of 5.875% per annum.

The 2024 Notes mature on October 30, 2024 and may be redeemed in whole or in part at any time or from time to time at the Company's option on or after October 30, 2017.

The 2024 Notes currently trade on the New York Stock Exchange under the symbol “OSLE” with a par value of $25.00 per note.

The 2024 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with (regardless of whether the Company is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act or any successor provisions and with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the Investment Company Act, as well as covenants requiring the Company to provide financial information to the holders of the 2024 Notes and the Trustee if the Company ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

These covenants are subject to limitations and exceptions that are described in the 2024 Notes Indenture.

The Company may repurchase the 2024 Notes in accordance with the Investment Company Act and the rules promulgated thereunder.

Any 2024 Notes repurchased by the Company may, at the Company's option, be surrendered to the Trustee for cancellation, but may not be reissued or resold by the Company.

Any 2024 Notes

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

surrendered for cancellation will be promptly canceled and no longer outstanding under the 2024 Notes Indenture.

During the years ended September 30, 2019 , 2018 and 2017, the Company did not repurchase any of the 2024 Notes in the open market.

For each of the years ended September 30, 2019 , 2018 and 2017, the Company recorded interest expense of $4.6 million , respectively, related to the 2024 Notes.

As of September 30, 2019 , there were $75.0 million of 2024 Notes outstanding, which had a carrying value and fair value of $73.9 million and $77.4 million , respectively.

As of September 30, 2018 , there were $75.0 million of 2024 Notes outstanding, which had a carrying value and fair value of $73.7 million and $75.7 million , respectively.

In April and May 2013, the Company issued $86.3 million in aggregate principal amount of its 6.125% unsecured 2028 Notes for net proceeds of $83.4 million after deducting underwriting commissions of $2.6 million and offering costs of $0.3 million.

The 2028 Notes were issued pursuant to an indenture, dated April 30, 2012, as supplemented by the second supplemental indenture, dated April 4, 2013 (collectively, the "2028 Notes Indenture"), between the Company and the Trustee.

The 2028 Notes are the Company's unsecured obligations and rank senior in right of payment to the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2028 Notes;

equal in right of payment to the Company's existing and future unsecured indebtedness that is not so subordinated;

effectively junior in right of payment to any of the Company's secured indebtedness (including existing unsecured indebtedness that it later secures) to the extent of the value of the assets securing such indebtedness;

and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries or financing vehicles.

Interest on the 2028 Notes is paid quarterly in arrears on January 30, April 30, July 30 and October 30 at a rate of 6.125% per annum.

The 2028 Notes mature on April 30, 2028 and may be redeemed in whole or in part at any time or from time to time at the Company's option on or after April 30, 2018.

The 2028 Notes currently trade on the Nasdaq Global Select Market under the symbol "OCSLL" with a par value of $25.00 per note.

The 2028 Notes Indenture contains certain covenants, including covenants requiring the Company's compliance with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act or any successor provisions, as well as covenants requiring the Company to provide financial information to the holders of the 2028 Notes and the Trustee if it ceases to be subject to the reporting requirements of the Exchange Act.

These covenants are subject to limitations and exceptions that are described in the 2028 Notes Indenture.

The Company may repurchase the 2028 Notes in accordance with the Investment Company Act and the rules promulgated thereunder.

Any 2028 Notes repurchased by the Company may, at its option, be surrendered to the Trustee for cancellation, but may not be reissued or resold by the Company.

Any 2028 Notes surrendered for cancellation will be promptly canceled and no longer outstanding under the 2028 Notes Indenture.

During the years ended September 30, 2019 , 2018 and 2017, the Company did not repurchase any of the 2028 Notes in the open market.

For each of the years ended September 30, 2019 , 2018 and 2017, the Company recorded interest expense of $5.5 million related to the 2028 Notes.

As of September 30, 2019 , there were $86.3 million of 2028 Notes outstanding, which had a carrying value and fair value of $84.6 million and $87.6 million , respectively.

As of September 30, 2018 , there were $86.3 million of 2028 Notes outstanding, which had a carrying value and fair value of $84.4 million and $86.9 million , respectively.

Secured Borrowings

As of September 30, 2019 , there were no secured borrowings outstanding.

As of September 30, 2018, there were $12.3 million of secured borrowings outstanding.

As of September 30, 2018 , secured borrowings at fair value totaled $9.7 million and the fair value of the investment that is associated with these secured borrowings was $34.3 million.

These secured borrowings were the result of the Company's completion of partial loan sales totaling $22.8 million of a senior secured debt investment during the fiscal year ended September 30, 2014 that did not meet the definition of a participating interest.

As a result, sale treatment was not allowed and these partial loan sales were treated as secured borrowings.

The Company received loan servicing fees as it continues to serve as administrative agent for this investment.

As a result, the Company earned servicing fees in connection with the loans that were partially sold.

During the years ended September 30, 2019 , 2018 and 2017, there were $2.7 million , $1.2 million, and $5.4 million of net cash repayments on secured borrowings, respectively.

During the year ended September 30, 2019 , $7.2 million of secured borrowings were extinguished in exchange for $7.2 million of preferred stock in C5 Technology Holdings, LLC, which was restructured during the year.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the years ended September 30, 2019 , 2018 and 2017, the Company recorded interest expense of $0.1 million , $0.7 million and $1.2 million , respectively, related to the secured borrowings.

For the years ended September 30, 2019 , 2018 and 2017, the Company recorded unrealized appreciation (depreciation) on secured borrowings of $(2.7) million , $2.4 million, $(0.3) million respectively.

For the year ended September 30, 2019 , the Company recorded a realized gain of $2.6 million as a result of the extinguishment of secured borrowings in connection with the C5 Technology Holdings, LLC restructuring.

Derivative Instruments

The Company enters into forward currency contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies.

As of September 30, 2019 , the counterparty to these forward currency contracts was JPMorgan Chase Bank, N.A.

In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company entered into an International Swaps and Derivatives Association, Inc.

Master Agreement ("ISDA Master Agreement") with its derivative counterparty, JPMorgan Chase Bank, N.A.

The ISDA Master Agreement permits a single net payment in the event of a default or similar event.

As of September 30, 2020, no cash collateral has been pledged to cover obligations and no cash collateral has been received from the counterparty with respect to the Company's forward currency contracts.

Net unrealized gains or losses on foreign currency contracts are included in “net unrealized appreciation (depreciation)” and net realized gains or losses on forward currency contracts are included in “net realized gains (losses)” in the accompanying Consolidated Statements of Operations.

1 unchanged sentence

Certain information related to the Company’s foreign currency forward contracts is presented below as of September 30, 2020.

Notional Amount to be Purchased

Notional Amount to be Sold

Maturity Date

Gross Amount of Recognized Assets

Gross Amount of Recognized Liabilities

Balance Sheet Location of Net Amounts

Foreign currency forward contract

Derivative asset

Foreign currency forward contract

Derivative asset

Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets Gross Amount of Recognized Liabilities Balance Sheet Location of Net Amounts

Foreign currency forward contract $ 35,577 £ 27,494 11/12/2020 $ 25 $ — Derivative asset

Foreign currency forward contract $ 30,260 € 25,614 11/12/2020 $ 198 $ — Derivative asset

Certain information related to the Company’s foreign currency forward contracts is presented below as of September 30, 2019.

Notional Amount to be Purchased

Notional Amount to be Sold

Maturity Date

Gross Amount of Recognized Assets

Gross Amount of Recognized Liabilities

Balance Sheet Location of Net Amounts

Foreign currency forward contract

Derivative asset

Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets Gross Amount of Recognized Liabilities Balance Sheet Location of Net Amounts

Foreign currency forward contract $ 22,161 £ 17,910 10/15/2019 $ 76 $ — Derivative asset

Foreign currency forward contract $ 19,193 € 17,150 11/29/2019 $ 414 $ — Derivative asset

Commitments and Contingencies

Off-Balance Sheet Arrangements

The Company may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its companies.

The Company may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its portfolio companies.

As of September 30, 2020, the Company's only off-balance sheet arrangements consisted of $157.5 million of unfunded commitments, which was comprised of $152.7 million to provide debt financing to certain of its portfolio companies, $1.3 million to provide equity financing to SLF JV I and $3.5 million related to unfunded limited partnership interests.

5 unchanged sentences

A list of unfunded commitments by investment (consisting of revolvers, term loans with delayed draw components, SLF JV I LLC subordinated notes and LLC equity interests and limited partnership interests) as of September 30, 2020 and September 30, 2019 is shown in the table below:

September 30, 2019

September 30, 2018

September 30, 2020 September 30, 2019

Assembled Brands Capital LLC $ 36,079 $ 35,182

WPEngine, Inc.

Athenex, Inc.

NuStar Logistics, L.P.

Holdings II SÀRL 7,541 —

MRI Software LLC 7,239 —

Dominion Diagnostics, LLC 5,887 —

Corrona, LLC 5,189 —

NeuAG, LLC 4,382 —

Pingora MSR Opportunity Fund I-A, LP 3,500 3,500

Mindbody, Inc.

Ardonagh Midco 3 PLC 3,007 —

Accupac, Inc.

New IPT, Inc.

Olaplex, Inc.

Senior Loan Fund JV I, LLC 1,328 1,328

Coyote Buyer, LLC 942 —

Immucor, Inc.

Ministry Brands, LLC 425 800

GKD Index Partners, LLC 231 1,156

PaySimple, Inc.

2 unchanged sentences

TerSera Therapeutics, LLC — 4,200

Pingora MSR Opportunity Fund I-A, LP

Mindbody, Inc.

Thruline Marketing, Inc.

New IPT, Inc.

4 Over International, LLC — 1,977

Senior Loan Fund JV I, LLC

GKD Index Partners, LLC

Ministry Brands, LLC

PLATO Learning Inc.

Dominion Diagnostics, LLC

EOS Fitness Opco Holdings, LLC

InMotion Entertainment Group, LLC

Access CIG LLC

Cenegenics, LLC (1)

(1) This investment was on cash or PIK non-accrual status as of September 30, 2019 .

$ 157,530 $ 88,336

(1) This investment was on cash or PIK non-accrual status as of September 30, 2020 and September 30, 2019.

OAKTREE SPECIALTY LENDING CORPORATION

6 unchanged sentences

except per share

September 30, 2019

December 31, 2018

September 30, 2018

December 31, 2017

September 30, 2017

amounts) September 30, 2020 June 30,

2020 March 31,

2020 December 31, 2019 September 30, 2019 June 30,

2019 March 31,

2019 December 31, 2018

3 unchanged sentences

Net increase (decrease) in net assets resulting from operations 70,617 120,231 (165,467) 13,843 13,971 19,986 64,485 27,718

Net assets 914,879 859,063 752,224 931,082 930,630 930,050 923,456 872,362

Total investment income per common share (1) $ 0.31 $ 0.24 $ 0.24 $ 0.22 $ 0.24 $ 0.26 $ 0.27 $ 0.27

2 unchanged sentences

Net asset value per common share at period end 6.49 6.09 5.34 6.61 6.60 6.60 6.55 6.19

The sum of quarterly per share amounts may not sum due to rounding.

(1) The sum of quarterly per share amounts may not equal annual amounts due to rounding.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

Subsequent Events

2 unchanged sentences

Distribution Declaration

On November 12, 2019 , the Company’s Board of Directors declared a quarterly distribution of $0.095 per share, payable on December 31, 2019 to stockholders of record on December 13, 2019 .

On November 13, 2020, the Company’s Board of Directors declared a quarterly distribution of $0.11 per share, payable in cash on December 31, 2020 to stockholders of record on December 15, 2020.

Upsize of Credit Facility

On October 28, 2020, the Company entered into an incremental commitment and assumption agreement in connection with the Company’s exercise of $75 million of the accordion feature under the Credit Facility, increasing the size of the Credit Facility to $775 million.

Merger Agreement

On October 28, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Oaktree Strategic Income Corporation, a Delaware corporation (“OCSI”), Lion Merger Sub, Inc., a Delaware corporation and the Company’s wholly-owned subsidiary (“Merger Sub”), and, solely for the limited purposes set forth therein, Oaktree.

The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into OCSI, with OCSI continuing as the surviving company and as the Company’s wholly-owned subsidiary (the “Merger”), and, immediately thereafter, OCSI will merge with and into the Company, with the Company continuing as the surviving company (together with the Merger, the “Mergers”).

Both the Company’s Board of Directors and the Board of Directors of OCSI, including all of the respective independent directors, in each case, on the recommendation of a special committee comprised solely of certain independent directors of the Company or OCSI, as applicable, have approved the Merger Agreement and the transactions contemplated thereby.

At the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.01 per share, of OCSI (the “OCSI Common Stock”) issued and outstanding immediately prior to the Effective Time (other than shares owned by the Company or any of its consolidated subsidiaries (the “Cancelled Shares”)) will be converted into the right to receive a number of shares of the Company’s common stock equal to the Exchange Ratio (as defined below), plus any cash (without interest) in lieu of fractional shares.

As of a mutually agreed date no earlier than 48 hours (excluding Sundays and holidays) prior to the Effective Time (such date, the “Determination Date”), each of the Company and OCSI will deliver to the other a calculation of its net asset value as of such date (such calculation with respect to OCSI, the “Closing OCSI Net Asset Value” and such calculation with respect to the Company, the “Closing OCSL Net Asset Value”), in each case using a pre-agreed set of assumptions, methodologies and adjustments.

Based on such calculations, the parties will calculate the “OCSI Per Share NAV”, which will be equal to (i) the Closing OCSI Net Asset Value divided by (ii) the number of shares of OCSI Common Stock issued and outstanding as of the Determination Date (excluding any Cancelled Shares), and the “OCSL Per Share NAV”, which will be equal to (A) the Closing OCSL Net Asset Value divided by (B) the number of shares of the Company’s common stock issued and outstanding as of the Determination Date.

The “Exchange Ratio” will be equal to the quotient (rounded to four decimal places) of (i) the OCSI Per Share NAV divided by (ii) the OCSL Per Share NAV.

The Company and OCSI will update and redeliver the Closing OCSL Net Asset Value or the Closing OCSI Net Asset Value, respectively, in the event of a material change to such calculation between the Determination Date and the closing of the Mergers and if needed to ensure that the calculation is determined within 48 hours (excluding Sundays and holidays) prior to the Effective Time.

OAKTREE SPECIALTY LENDING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

The Merger Agreement contains customary representations and warranties by each of the Company, OCSI and Oaktree.

The Merger Agreement also contains customary covenants, including, among others, covenants relating to the operation of each of the Company’s and OCSI’s businesses during the period prior to the closing of the Mergers.

Consummation of the Mergers, which is currently anticipated to occur during the first half of calendar year 2021, is subject to certain closing conditions, including requisite approvals of the Company’s and OCSI’s stockholders and certain other closing conditions.

The Merger Agreement also contains certain termination rights in favor of the Company and OCSI, including if the Mergers are not completed on or before July 28, 2021 or if the requisite approvals of the Company’s or OCSI’s stockholders are not obtained.

The Merger Agreement provides that, upon the termination of the Merger Agreement under certain circumstances, a third party acquiring OCSI may be required to pay the Company a termination fee of approximately $5.7 million.

The Merger Agreement provides that, upon the termination of the Merger Agreement under certain circumstances, a third party acquiring the Company may be required to pay OCSI a termination fee of approximately $20.0 million.

Management Fee Waiver

In connection with entry into the Merger Agreement, Oaktree has agreed to waive $750,000 of base management fees payable to it under the Investment Advisory Agreement in each of the eight quarters immediately following the closing of the Mergers (for an aggregate waiver of $6.0 million of base management fees).

Schedule 12-14

3 unchanged sentences

Year ended September 30, 2020

Portfolio Company/Type of Investment (1)

Cash Interest Rate

Net Realized Gain (Loss)

Portfolio Company/Type of Investment (1) Cash Interest Rate Industry Principal Net Realized Gain (Loss) Amount of

Income (2) Fair Value

at October 1,

Additions (3)

Reductions (4)

at September 30, 2019

% of Total Net Assets

Additions (3) Gross

Reductions (4) Fair Value

at September 30, 2020 % of Total Net Assets

Control Investments

C5 Technology Holdings, LLC

Data Processing & Outsourced Services

C5 Technology Holdings, LLC Data Processing & Outsourced Services

829 Common Units $ — $ — $ — $ — $ — $ — — %

34,984,460.37 Preferred Units — — 34,984 — (7,346) 27,638 3.0 %

First Star Speir Aviation Limited (5)

Dominion Diagnostics, LLC Health Care Services

First Lien Term Loan, LIBOR+5.00% cash due 2/28/2024 6.00 % $ 27,660 — 1,076 — 27,869 (209) 27,660 3.0 %

First Lien Revolver, LIBOR+5.00% cash due 2/28/2024 6.00 % 5,260 — 216 — 5,260 — 5,260 0.6 %

30,030.8 Common Units in DD Healthcare Services Holdings, LLC — — — 18,627 (10,960) 7,667 0.8 %

First Star Speir Aviation Limited (5) Airlines

First Lien Term Loan, 9.00% cash due 12/15/2020 11,510 — 1,180 11,510 106 (106) 11,510 1.3 %

3 unchanged sentences

First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021 6.00 % 2,304 — 193 3,256 — (1,456) 1,800 0.2 %

Second Lien Term Loan, LIBOR+5.10% cash due 9/17/2021 (6)

First Lien Revolver, LIBOR+5.00% cash due 3/17/2021 6.00 % 1,009 — 76 1,009 — (221) 788 0.1 %

50.087 Class A Common Units in New IPT Holdings, LLC — — 2,903 — (2,903) — — %

Senior Loan Fund JV I, LLC (6)

Multi-sector holdings

Class A Mezzanine Secured Deferrable Floating Rate Notes due 2036 in SLF Repack Issuer 2016 LLC

Class B Mezzanine Secured Deferrable Fixed Rate Notes, 10% cash due 2036 in SLF Repack Issuer 2016 LLC

Senior Loan Fund JV I, LLC (6) Multi-Sector Holdings

Subordinated Debt, LIBOR+7.00% cash due 12/29/2028 7.17 % 96,250 — 8,055 96,250 — — 96,250 10.5 %

6 unchanged sentences

Affiliate Investments

Assembled Brands Capital LLC

Specialized finance

First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 10/17/2023

Assembled Brands Capital LLC Specialized Finance

First Lien Revolver, LIBOR+6.00% cash due 10/17/2023 7.00 % $ 4,688 $ — $ 487 $ 5,585 $ 2,036 $ (3,427) $ 4,194 0.5 %

1,609,201 Class A Units — — 782 — (299) 483 0.1 %

2 unchanged sentences

Caregiver Services, Inc.

Healthcare services

Health Care Services

1,080,399 shares of Series A Preferred Stock, 10% — — — 1,784 — (1,043) 741 0.1 %

7 unchanged sentences

Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation as well as the movement of an existing portfolio company into this category or out of a different category.

Gross reductions include decreases in the cost basis of investment resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities.

(4) Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities.

Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.

1 unchanged sentence

In accordance with ASU 2013-08, the Company has deemed the holding company to be an investment company under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding company and to recognize dividend income versus a combination of interest income and dividend income.

Accordingly, the debt and equity investments in the holding company is disregarded for accounting purposes since the economic substance of this instrument is an equity investment in the operating entity.

(6) Together with Kemper, the Company co-invests through SLF JV I.

SLF JV I is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF JV I must be approved by the SLF JV I investment committee consisting of representatives of the Company and Kemper (with approval from a representative of each required).

During the year ended September 30, 2019 , the portfolio company was renamed from Keypath Education, Inc.

to Thruline Marketing, Inc.

Schedule 12-14

3 unchanged sentences

Year ended September 30, 2019

Portfolio Company/Type of Investment (1)

Cash Interest Rate

Net Realized Gain (Loss)

Portfolio Company/Type of Investment (1) Cash Interest Rate Industry Principal Net Realized Gain (Loss) Amount of

Income (2) Fair Value

at October 1,

Additions (3)

Reductions (4)

at September 30, 2018

% of Total Net Assets

Additions (3) Gross

Reductions (4) Fair Value

at September 30, 2019 % of Total Net Assets

Control Investments

AdVenture Interactive, Corp.

9,073 shares of common units

Ameritox Ltd.

Healthcare services

First Lien Term Loan, LIBOR+5% (1% floor) cash 3% PIK due 4/11/2021

14,090,126.4 Class A Preferred Units in Ameritox Holdings II, LLC

1,602,260.83 Class B Preferred Units in Ameritox Holdings II, LLC

4,930.03 Class A Units in Ameritox Holdings II, LLC

Eagle Hospital Physicians, LLC

Healthcare services

First Star Bermuda Aviation Limited (5)

First Lien Term Loan, 9% cash 3% PIK due 8/19/2018

100% equity interest

First Star Speir Aviation Limited (5)

C5 Technology Holdings, LLC Data Processing & Outsourced Services

829 Common Units $ — $ — $ — $ — $ — $ — — %

34,984,460.37 Preferred Units — — — 34.984 — 34,984 3.8 %

First Star Speir Aviation Limited (5) Airlines

First Lien Term Loan, 9.00% cash due 12/15/2020 $ 11,510 — 1,825 32,510 962 (21,962) 11,510 1.2 %

100% equity interest — — — — 4,730 (100) 4,630 0.5 %

Keypath Education, Inc.

First Lien Term Loan, LIBOR+7% (1% floor) cash due 4/3/2022

First Lien Revolver, LIBOR+7.75% (1% floor) cash due 4/3/2022

9,073 Class A Units in FS AVI Holdco, LLC

New IPT, Inc.

Oil & gas equipment services

First Lien Term Loan, LIBOR+5% (1% floor) cash due 3/17/2021

Second Lien Term Loan, LIBOR+5.1% (1% floor) cash due 9/17/2021

First Lien Revolver, LIBOR+5% (1% floor) cash due 3/17/2021

First Lien Term Loan, LIBOR+5.00% cash due 3/17/2021 (6) 7.10 % 3,256 — 331 4,107 25 (876) 3,256 0.3 %

Second Lien Term Loan, LIBOR+5.10% cash due 9/17/2021 (6) — — 45 1,453 — (1,453) — — %

First Lien Revolver, LIBOR+5.00% cash due 3/17/2021 (6) 7.10 % 1,009 — 85 1,009 — — 1,009 0.1 %

50.087 Class A Common Units in New IPT Holdings, LLC — — 2,291 612 — 2,903 0.3 %

Senior Loan Fund JV I, LLC (6)

Multi-sector holdings

Senior Loan Fund JV I, LLC (6) Multi-sector holdings

Class A Mezzanine Secured Deferrable Floating Rate Notes due 2036 in SLF Repack Issuer 2016 LLC — — 2,036 99,813 — (99,813) — — %

Class B Mezzanine Secured Deferrable Fixed Rate Notes, 10% cash due 2036 in SLF Repack Issuer 2016 LLC — — 707 29,520 67 (29,587) — — %

87.5% equity interest

Traffic Solutions Holdings, Inc.

Construction & engineering

First Lien Term Loan, LIBOR+7% (1% floor) cash 2% PIK due 4/1/2021

First Lien Revolver, LIBOR+6% (1% floor) cash due 4/1/2021

LC Facility, 6% cash due 4/1/2021

746,114 Series A Preferred Units, 10%

746,114 Common Stock Unit

Portfolio Company/Type of Investment (1)

Cash Interest Rate

Net Realized Gain (Loss)

at October 1,

Additions (3)

Reductions (4)

at September 30, 2018

% of Total Net Assets

TransTrade Operators, Inc.

Air freight and logistics

First Lien Term Loan, 5% cash due 12/31/2017

First Lien Revolver, 8% cash due 12/31/2017

596.67 Series A Common Units

4,000 Series A Preferred Units in TransTrade Holdings LLC

5,200,000 Series B Preferred Units in TransTrade Holding LLC

Subordinated Debt, LIBOR+7.00% cash due 12/29/2028 9.39 % 96,250 — 7,007 — 96,250 — 96,250 10.3 %

87.5% LLC equity interest — — 41 37,735 (7,724) 30,052 3.2 %

Thruline Marketing, Inc.

First Lien Term Loan, LIBOR+7.00% cash due 4/3/2022 (6) 9.10 % 18,146 — 1,752 18,146 — — 18,146 1.9 %

First Lien Revolver, LIBOR+7.75% cash due 4/3/2022 (6) — — 15 — — — — — %

9,073 Class A Units in FS AVI Holdco, LLC — — 7,984 — (1,546) 6,438 0.7 %

Total Control Investments $ 130,171 $ — $ 13,803 $ 196,874 $ 175,365 $ (163,061) $ 209,178 22.5 %

Affiliate Investments

AmBath/ReBath Holdings, Inc.

Home improvement retail

First Lien Term Loan B, 12.5% cash 2.5% PIK due 8/31/2018

4,668,788 shares of Preferred Stock

Assembled Brands Capital LLC Specialized finance

First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 10/17/2023 8.10 % $ 5,585 $ — $ 225 $ — $ 5,605 $ (20) $ 5,585 0.6 %

1,609,201 Class A Units — — — 782 — 782 0.1 %

1,019,168.80 Preferred Units, 6% — — — 1,019 — 1,019 0.1 %

70,424.5641 Class A Warrants (exercise price $3.3778) expiration date 9/9/2029 — — — — — — — %

Caregiver Services, Inc.

Healthcare services

Second Lien Term Loan, 10% cash 2% PIK due 6/30/2019

1,080,399 shares of Series A Preferred Stock, 10% — — — 2,161 — (377) 1,784 0.2 %

9 unchanged sentences

First Star Bermuda Aviation Limited and First Star Speir Aviation Limited are wholly-owned holding companies formed by the Company in order to facilitate its investment strategy.

In accordance with ASU 2013-08, the Company has deemed the holding companies to be investment companies under GAAP and therefore deemed it appropriate to consolidate the financial results and financial position of the holding companies and to recognize dividend income versus a combination of interest income and dividend income.

Accordingly, the debt and equity investments in the wholly-owned holding companies are disregarded for accounting purposes since the economic substance of these instruments are equity investments in the operating entities.

(5) First Star Speir Aviation Limited is a wholly-owned holding company formed by the Company in order to facilitate its investment strategy.

(6) Together with Kemper, the Company co-invests through SLF JV I.

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk