Published on 2/13/2020 in the Prospect News Investment Grade Daily.
New Issue: Oaktree Specialty sells $300 million 3.5% notes due 2025 at 225 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Feb. 13 – Oaktree Specialty Lending Corp. (Baa3//BBB-) priced $300 million of 3.5% five-year senior notes on Thursday at 99.153 to yield 3.687% and a spread of 225 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of guidance in the Treasuries plus 230 bps area and better than initial talk at the 250 bps over Treasuries area.
J.P. Morgan Securities LLC, BofA Securities, Inc., RBC Capital Markets, LLC and ING Financial Markets LLC were the bookrunners.
Oaktree held fixed income investor calls for the offering on Monday and Tuesday.
Proceeds will be used to reduce outstanding debt, including the company’s 5.875% notes due 2024, 6.125% notes due 2028 and borrowings under its revolving credit facility, and for general corporate purposes.
Oaktree plans to redeem all $75 million outstanding of its 5.875% $25-par notes due 2024 (NYSE: OSLE) on March 2.
The Los Angeles-based specialty finance company is managed by Oaktree Capital Group, LLC.
| Issuer: | Oaktree Specialty Lending Corp.
|
| Amount: | $300 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 25, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., RBC Capital Markets, LLC and ING Financial Markets LLC
|
| Co-managers: | Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., MUFG, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, CIT Capital Securities LLC, R. Seelaus & Co., LLC, Janney Montgomery Scott LLC, Jefferies LLC, JMP Securities LLC, Keefe, Bruyette & Woods, Inc. and Wells Fargo Securities, LLC
|
| Coupon: | 3.5%
|
| Price: | 99.153
|
| Yield: | 3.687%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps before Jan. 25, 2025; thereafter at par
|
| Change-of-control put: | Par
|
| Trade date: | Feb. 13
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| Settlement date: | Feb. 25
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| Ratings: | Moody’s: Baa3
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| Fitch: BBB-
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| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 230 bps area, plus or minus 5 bps; initial talk at Treasuries plus 250 bps area
|
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