Oaktree Strategic extends, upsizes five-year revolver to $1.1 billion

By William Gullotti

Buffalo, N.Y., July 5 – Oaktree Strategic Credit Fund amended and extended its upsized $1.1 billion senior secured revolving credit facility with ING Capital LLC as administrative agent on June 28, according to an 8-K filing with the Securities and Exchange Commission.

With the exception of commitments under the original revolving credit facility provided by MUFG Union Bank, NA, the sole non-extending lender, the availability period for the revolver was extended to June 28, 2027 from March 25, 2026. Likewise, the maturity was extended to June 28, 2028 from March 25, 2027, with MUFG’s commitments excepted.

Revolver commitments more than doubled, upping the facility’s capacity to $1.1 billion from $490 million. The additional commitments are conditional, subject to the lesser of the borrowing base and the increased commitment.

At any time during the amended availability period, Oaktree may propose an increase in the maximum commitments in an amount not to exceed the greater of $1.25 billion and 150% of shareholders’ equity as of the date on which such increased amount is to be effective, subject to certain conditions, including lender consent.

Borrowings are secured by a first-priority security interest, subject to certain exceptions, in substantially all of the present and future property/assets of the company and subsidiary guarantor, including future subsidiaries.

The revolver also includes a $25 million subfacility for letters of credit.

The interest rate was increased to SOFR plus 215 basis points from SOFR plus 187.5 bps, with the new margin stepping down to 205 bps if the company has, and has maintained, an investment-grade rating after one year.

There is also a 37.5 bps commitment fee on the daily unused portion of the aggregate commitments under the facility, subject to increase to 100 bps if the daily unused amount is greater than or equal to 65% of the aggregate commitments.

Borrowings may be used for general corporate purposes, including making investments and permitted distributions.

In addition to acting as administrative agent, ING is also the bookrunner and syndication agent, as well as serving as lead arranger along with Wells Fargo Bank, NA and Sumitomo Mitsui Banking Corp.

The fund is managed by Oaktree Capital Management, a specialty finance company based in Los Angeles.

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