Published on 5/12/2021 in the Prospect News Investment Grade Daily.
New Issue: Oaktree details $350 million 2.7% notes due 2027 that priced at 99.72
By Devika Patel and Cristal Cody
Knoxville, Tenn., May 12 – Oaktree Specialty Lending Corp. offered further details, including the price and yield, about a $350 million sale of 2.7% senior notes (expected: Baa3/BBB-) due Jan. 15, 2027 that priced on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The bonds were sold at 99.72 to yield 2.753%.
The bonds priced at Treasuries plus 195 basis points. The notes were talked in the Treasuries plus 215 bps area.
RBC Capital Markets LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and SMBC Nikko Securities America, Inc. were the joint bookrunners.
Proceeds will be used to reduce debt under the company’s syndicated revolving credit facility and for general corporate purposes. As of March 31, the company had $575 million outstanding under the revolver.
The specialty finance company is based in Los Angeles.
| Issuer: | Oaktree Specialty Lending Corp.
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| Issue: | Senior notes
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| Amount: | $350 million
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| Maturity: | Jan. 15, 2027
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| Bookrunners: | RBC Capital Markets LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and SMBC Nikko Securities America, Inc.
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| Co-managers: | ING Financial Markets LLC, MUFG, BofA Securities Inc., J.P. Morgan Securities LLC, Barclays, CIBC World Markets Corp., Goldman Sachs & Co. LLC, Keefe, Bruyette & Woods, Inc., KeyBanc Capital Markets Inc., Santander Investment Securities Inc., Morgan Stanley & Co. LLC, Hovde Group, LLC, JMP Securities LLC, Oppenheimer & Co. Inc., Wells Fargo Securities, LLC, CIT Capital Securities LLC and R. Seelaus & Co., LLC
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| Coupon: | 2.7%
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| Price: | 99.72
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| Yield: | 2.753%
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| Spread: | Treasuries plus 195 bps
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| Call: | Make-whole call at Treasuries plus 30 bps until Dec. 15, 2026, then a par call
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| Pricing date: | May 11
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| Settlement date: | May 18
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Price guidance: | Treasuries plus 215 bps area
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