Articles for Oaktree Strategic Income

A major realized loss for Ares Capital and – to a much lesser degree – for three other BDCs – discussed.

A change at the helm of two Oaktree-managed BDCs with the departure of CEO Edgar Lee. We discuss the legacy of the last two years and the challenges facing Oaktree Strategic Income. This is Part I. In Part II, we’ll undertake a similar exercise for Oaktree Specialty Lending.

We share highlights from the BDC Credit Reporter’s compilation for the week of developments amongst under-performing portfolio companies, naming the BDCs and the amounts involved.

A famous discount retailer gets restructured and three BDCs with more than $50mn of exposure are involved. We re-publish our post from the BDC Reporter and discuss both the credit issues and the valuations involved.

Here are some of the latest developments amongst under-performing BDC companies since our last report filed April 22, 2019

Moody’s has named the 17 top candidates amongst retail names to file bankruptcy in 2019. The BDC Reporter analyzes how BDC lenders might fare if the worst comes to pass.

A rural telecom company files Chapter 11. We review BDC exposure and potential impact on income and book value.

The BDC Reporter annotates the Oaktree Strategic Income Conference Call transcript in our unique feature. We have a large number of comments, rhetorical questions and asides.

Oaktree Strategic Income repays one financing with a new one. All part of the BDC’s attempt to leverage up to a debt to equity of 1.6x, but there’s a long way to go and key questions remain unanswered.

Oaktree Strategic Income takes a step towards leveraging up its balance sheet by receiving a waiver of the 200% asset coverage from its lenders. We run the numbers, though, and are not convinced shareholders will benefit.

Oaktree Strategic Income cuts its distribution – the second BDC this year just 6 weeks in. Are we done with the payout reductions at OCSI ?