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Oaktree Strategic subsidiary enters $250 million revolving facility
By Marisa Wong
Morgantown, W.Va., Sept. 25 – Oaktree Strategic Income Corp.’s wholly owned subsidiary, OCSI Senior Funding Ltd. entered into a $250 million credit facility on Sept. 24 with Deutsche Bank AG, New York Branch as facility agent and Wells Fargo Bank, NA as collateral agent, according to an 8-K filing with the Securities and Exchange Commission.
The credit facility can be increased to $300 million in connection with some milestones in the marketing of a collateralized loan obligation.
The revolving period expires on March 24, 2019.
The credit facility will mature on the earliest of six months from the termination of the revolving period, the occurrence of an event of default or completion of a securitization transaction.
Prior to the end of the revolving period, borrowings will bear interest at Libor plus 190 basis points, following which the interest rate will reset to Libor plus 205 bps for the remaining term of the facility.
No up-front commitment fees were paid in connection with the facility. However, there is a non-usage fee of 25 bps payable on the undrawn amount through Dec. 24, stepping up to 50 bps for the remaining term of the facility.
In connection with the new loan, FS Senior Funding Ltd. and FS Senior Funding CLO LLC redeemed all outstanding senior secured notes issued in Oaktree’s $309 million debt securitization that would have otherwise matured on May 28, 2025.
Following the redemption, the 2015 agreements governing the debt securitization were terminated, and FS Senior Funding Ltd. was merged with and into OCSI Senior Funding, with OCSI Senior Funding continuing as the surviving entity.
Oaktree is a specialty finance company based in Los Angeles.
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