Oaktree lifts revolving facility to $680 million, extends to 2024

By Sarah Lizee

Olympia, Wash., Feb. 26 – Oaktree Specialty Lending Corp. amended and restated its senior secured revolving credit facility on Monday with ING Capital LLC as administrative agent to increase the size of the facility to $680 million from $600 million, according to an 8-K filing with the Securities and Exchange Commission.

ING Capital, JPMorgan Chase Bank, NA and Merrill Lynch, Pierce, Fenner & Smith Inc. are joint lead arrangers and joint bookrunners and JPMorgan Chase and Bank of America, NA are syndication agents.

The amended facility continues to include an accordion feature which would allow Oaktree to increase the size of the facility to a maximum of $1.02 billion, under some conditions.

The amendment also extends the period during which Oaktree may make drawings to Feb. 25, 2023 from Nov. 30, 2020, and the final maturity date to Feb. 25, 2024 from Nov. 30, 2021.

Also, the interest rate margins for Libor loans was lowered to 200 basis points to 225 bps from 225 bps to 275 bps previously. The margin is based on the senior debt coverage ratio. At amendment close, interest was Libor plus 200 bps.

In addition, the asset coverage covenant of the amended facility will automatically be reduced to 165% from 200% once the modified asset coverage requirements under the Investment Company Act of 1940 become applicable to Oaktree on Feb. 1, 2020.

Formerly Fifth Street Finance Corp., Oaktree Specialty is a specialty finance company based in Los Angeles. The business development company is managed by Oaktree Capital Management, LP.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.