Mike Whitaker's questions to Oaktree Specialty Lending Corp (OCSL) leadership • Q1 2025
Question
Mike Whitaker, a private investor, questioned the rationale for Oaktree purchasing $100 million in new shares at net asset value (NAV) when the stock was trading at a significant discount in the open market, and asked for clarification on the issuance details.
Answer
President Mathew Pendo and CEO and Co-CIO Armen Panossian explained that issuing new shares at NAV directly injects capital into OCSL, enabling asset growth and diversification by deploying funds into an attractive pipeline. They emphasized this action grows the BDC's balance sheet and is more beneficial for all shareholders than the manager simply buying existing shares. They clarified it was a single $100 million transaction at the January 31 NAV of $17.63 per share.