Oaktree Specialty Lending Corporation Announces Amendments to its Secured Revolving Credit Facility
Rhea-AI Summary
Oaktree Specialty Lending (NASDAQ:OCSL) has announced significant amendments to its senior secured revolving credit facility. The key changes include extending the maturity date from June 2028 to April 2030 and reducing the interest rate from SOFR plus 2.00% to SOFR plus 1.75% to 1.875%, depending on debt outstanding, plus a 0.10% SOFR adjustment.
The amended facility maintains its accordion feature, allowing OCSL to potentially increase the facility size to $1,500 million under certain conditions. Additionally, the minimum consolidated interest coverage ratio requirement of 2.25x has been removed. The current interest rate stands at SOFR plus 1.875%, plus the 0.10% SOFR adjustment.
Positive
- Extended credit facility maturity by 2 years to April 2030
- Reduced interest rate by 25 basis points
- Removed minimum consolidated interest coverage ratio requirement of 2.25x
- Potential to increase facility size to $1,500M through accordion feature
- Lower interest expenses expected to boost net investment income
Negative
- None.
News Market Reaction – OCSL
In the trading session that priced this news, OCSL gained 2.31%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Extends Maturity to April 2030 and Lowers Pricing of the Facility
LOS ANGELES, CA, April 14, 2025 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“Oaktree Specialty Lending”) today announced that it has extended its senior secured revolving credit facility (the “amended facility”). The final maturity was extended from June 2028 to April 2030. The interest rate on the amended facility was reduced from SOFR plus
The amended facility continues to include an accordion feature which would allow Oaktree Specialty Lending to increase the size of the amended facility to a maximum of
“We are pleased to have completed the amendment and extension of our credit facility,” according to OCSL president, Matt Pendo. “We sincerely appreciate the support of our banking partners. By reducing interest expense and other fees, we believe this will have a positive effect on net investment income.”
About Oaktree Specialty Lending Corporation
Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. The firm seeks to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions including first and second lien loans, unsecured and mezzanine loans, and preferred equity. The company is regulated as a business development company under the Investment Company Act of 1940, as amended. Oaktree Specialty Lending is managed by Oaktree Capital Management, L.P. For additional information, please visit Oaktree Specialty Lending's website at www.oaktreespecialtylending.com.
Contacts
Investor Relations:
Oaktree Specialty Lending Corporation
Clark Koury
(213) 830-6222
ocsl-ir@oaktreecapital.com
