Published on 8/8/2023 in the Prospect News Investment Grade Daily.
New Issue: Oaktree Specialty sells $300 million 7.1% notes due 2025 at 325 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, Aug. 8 – Oaktree Specialty Lending Corp. (Baa3//BBB-) priced $300 million of 7.1% long five-year senior notes on Tuesday at 98.837 to yield 7.361% and a spread of 325 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes were guided in the Treasuries plus 335 bps area.
BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
Proceeds will be used to reduce debt under credit facilities, namely the $800 million syndicated credit facility that had a current weighted average interest rate of 6.584% and the $335 million outstanding OSI 2 Senior Lending SPV, LLC facility that had a weighted average interest rate of 7.275% for the first six months of the year.
The company may reborrow under the credit facilities later to make investments or use borrowings for general corporate purposes.
The Los Angeles-based specialty finance company is managed by Oaktree Capital Group, LLC.
| Issuer: | Oaktree Specialty Lending Corp.
|
| Amount: | $300 million
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| Description: | Senior notes
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| Maturity: | Feb. 15, 2029
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc.
|
| Co-managers: | ING Financial Markets LLC, BNP Paribas Securities Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Keefe, Bruyette & Woods, Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, CIT Capital Securities, B. Riley Securities, Inc., Citizens JMP Securities, LLC, Hovde Group, LLC, Jefferies LLC, Oppenheimer & Co., Inc. and R. Seelaus & Co., LLC
|
| Trustee: | Deutsche Bank Trust Co. Americas
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| Counsel to issuer: | Kirkland & Ellis LLP
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| Counsel to underwriters: | Dechert LLP
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| Coupon: | 7.1%
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| Price: | 98.837
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| Yield: | 7.361%
|
| Spread: | Treasuries plus 325 bps
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| Call features: | Make-whole call at Treasuries plus 50 bps before Jan. 21, 2029; thereafter at par
|
| Change-of-control put: | Par
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| Trade date: | Aug. 8
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| Settlement date: | Aug. 15
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| Ratings: | Moody’s: Baa3
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| Fitch: BBB-
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| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 335 bps area
|
| Cusip: | 67401PAD0
|
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