 LOS ANGELES, CA, Aug. 10, 2020 GLOBE NEWSWIRE -- Oaktree Strategic Income Corporation NASDAQ: OCSI Oaktree Strategic Income or the Company, a specialty finance company, today announced its financial results for the fiscal quarter ended June 30, 2020.Financial Highlights for the Quarter Ended June 30, 2020 Net asset value NAV per share was 8.47 as of June 30, 2020, up more than 18 from 7.17 as of March 31, 2020. The increase in NAV was primarily attributable to unrealized gains resulting from price increases on liquid debt investments following the improvement in broader credit market conditions. Total investment income was 8.6 million 0.29 per share for the third fiscal quarter of 2020, down from 10.3 million 0.35 per share for the second fiscal quarter of 2020, primarily reflecting lower interest income due to lower LIBOR, a smaller overall portfolio size and lower original issue discount OID acceleration income, as well as lower fee income. Net investment income was 3.2 million 0.11 per share for the third fiscal quarter of 2020, as compared with 4.6 million 0.15 per share for the second fiscal quarter of 2020, primarily driven by lower investment income, partially offset by lower interest expense resulting from lower LIBOR. Originated 41.6 million of new investment commitments and received 90.7 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended June 30, 2020. Of these new investment commitments, 100.0 were first lien loans. The weighted average yield on new investments was 9.5. Total debt outstanding was 312.2 million as of June 30, 2020. The total debt to equity ratio was 1.25x, and the net debt to equity ratio was 1.13x, after adjusting for cash and cash equivalents. Liquidity as of June 30, 2020 was composed of 30.1 million of unrestricted cash and cash equivalents and 92.8 million of undrawn capacity on its credit facilities subject to borrowing base and other limitations. Unfunded investment commitments were 31.6 million, or 17.6 million when excluding unfunded commitments to the OCSI Glick JV, with approximately 9.1 million that can be drawn immediately. The remaining 8.5 million is subject to certain milestones that must be met by one of the Companys portfolio companies. A quarterly cash distribution was declared of 0.125 per share, payable on September 30, 2020 to stockholders of record on September 15, 2020.Armen Panossian, Chief Executive Officer and Chief Investment Officer, said, OCSIs quarter was highlighted by a strong rebound in NAV and a solid level of originations. Following an improvement in credit market conditions, NAV increased by more than 18 percent, and the overall credit quality of the mostly first lien investment portfolio remains sound amid the uncertain economic environment. While we modestly reduced the overall size of the portfolio during the quarter, OCSI was able to leverage Oaktrees opportunistic credit platform to originate 42 million of new investment commitments at attractive yields. Importantly, we remain well-positioned with a solid balance sheet and ample liquidity to meet our funding needs during this period of uncertainty.Distribution DeclarationThe Board of Directors declared a quarterly distribution of 0.125 per share, payable on September 30, 2020 to stockholders of record on September 15, 2020.Distributions are paid primarily from distributable taxable income. To the extent taxable earnings for a fiscal taxable year fall below the total amount of distributions for that fiscal year, a portion of those distributions may be deemed a return of capital to the Companys stockholders.Results of Operations For the three months ended June 30, 2020 unaudited March 31, 2020 unaudited June 30, 2019 unaudited Operating results: Interest income7,783,459 9,665,605 13,521,604 PIK interest income744,122 296,894 2,838 Fee income108,580 380,114 284,081 Total investment income8,636,161 10,342,613 13,808,523 Net expenses5,467,652 5,780,838 7,890,136 Net investment income3,168,509 4,561,775 5,918,387 Net realized and unrealized gains losses38,990,006 74,777,439 2,435,487 Net increase decrease in net assets resulting from operations42,158,515 70,215,664 3,482,900 Net investment income per common share0.11 0.15 0.20 Net realized and unrealized gains losses per common share1.32 2.53 0.08 Earnings loss per common share basic and diluted1.43 2.38 0.12 As of June 30, 2020 unaudited March 31, 2020 unaudited September 30, 2019 Select balance sheet and other data: Cash and cash equivalents30,102,649 21,931,375 5,646,899 Investment portfolio at fair value506,452,244 524,379,311 597,104,447 Total debt outstanding312,156,800 327,156,800 294,656,800 Net assets249,709,066 211,233,898 284,450,006 Net asset value per share8.47 7.17 9.65 Total debt to equity ratio1.25x 1.55x 1.04x Net debt to equity ratio1.13x 1.44x 1.02x Total investment income for the quarter ended June 30, 2020 was 8.6 million and included 7.8 million of interest income from portfolio investments, 0.7 million of payment-in-kind PIK interest income and 0.1 million of fee income. Total investment income was 1.7 million lower as compared to the quarter ended March 31, 2020, primarily reflecting lower interest income due to lower LIBOR, a smaller overall portfolio size and lower OID acceleration income, as well as lower fee income. Net expenses for the quarter totaled 5.5 million, down 0.3 million from the quarter ended March 31, 2020. This was primarily attributable to a 0.5 million decrease in interest expense due to lower LIBOR, offset by a 0.3 million increase in Part I incentive fees.Net investment income was 3.2 million 0.11 per share for the third fiscal quarter of 2020, as compared with 4.6 million 0.15 per share for the second fiscal quarter of 2020.Net realized and unrealized gains on the investment portfolio for the quarter were 39.0 million and were primarily attributable to an increase in the prices of certain liquid debt investments and tighter credit spreads resulting from the improvement in broader credit market conditions during the quarter.Portfolio and Investment Activity As of in thousands June 30, 2020 unaudited March 31, 2020 unaudited June 30, 2019 unaudited Investments at fair value 506,452 524,379 588,582 Number of portfolio companies 76 88 82 Average portfolio company debt size 6,700 6,000 7,300 Asset class: Senior secured debt 90.9 92.8 90.5 OCSI Glick JV 9.1 7.2 9.5 Non-accrual debt investments: Non-accrual investments at fair value 47,874 37,834 Non-accrual investments as a percentage of debt investments 9.5 7.2 Number of investments on non-accrual 2 1 1 Interest rate type: Percentage floating-rate 98.7 100.0 100.0 Percentage fixed-rate 1.3 Yields: Weighted average yield on debt investments1 5.9 6.0 7.8 Weighted average yield on debt investments excluding the OCSI Glick JV2 6.5 6.5 7.6 Cash component of weighted average yield on debt investments 5.1 5.5 7.6 Weighted average yield on total portfolio investments3 5.9 6.0 7.8 Investment activity: New investment commitments 41,600 93,900 38,800 New funded investment activity4 34,900 101,300 41,300 Proceeds from prepayments, exits, other paydowns and sales 90,700 83,800 43,000 Net new investments5 55,800 17,500 1,700 Number of new investment commitments in new portfolio companies 7 18 5 Number of new investment commitments in existing portfolio companies 2 9 4 Number of portfolio company exits 19 14 4 ___1 Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments, including the Companys share of the return on debt investments in the OCSI Glick JV. 2 Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments, excluding the Companys share of the return on debt investments in the OCSI Glick JV. 3 Annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments and dividend income, including the Companys share of the return on debt investments in the OCSI Glick JV. 4 New funded investment activity includes drawdowns on existing revolver commitments. 5 Net new investments consists of new funded investment activity less proceeds from prepayments, exits, other paydowns and sales. As of June 30, 2020, the fair value of the Companys investment portfolio was 506.5 million and was composed of investments in 76 companies, including the OCSI Glick JV.As of June 30, 2020, 90.9 of the Companys portfolio at fair value consisted of senior secured debt investments, including 88.4 of first liens and 2.5 of second liens, and 9.1 was related to a subordinated note investment in the OCSI Glick JV.As of June 30, 2020, non-accruals represented 12.4 of the debt portfolio at cost and 9.5 at fair value. For the quarter ended June 30, 2020, the Company placed one new investment on non-accrual status, which represented 0.5 and 0.4 of the debt portfolio at cost and fair value, respectively.The Companys investments in the OCSI Glick JV totaled 46.0 million at fair value as of June 30, 2020, up 21 from 37.8 million as of March 31, 2020. 