- Oaktree Specialty Lending (OCSL, Financial) extends its credit facility maturity by two years to April 2030.
- Interest rates on the facility reduced by 25 basis points, now ranging from SOFR plus 1.75% to 1.875%.
- Potential for facility size increase to $1.5 billion through an accordion feature.
Oaktree Specialty Lending Corporation (NASDAQ: OCSL) has announced significant amendments to its senior secured revolving credit facility. The maturity date has been extended from June 2028 to April 2030. The interest rate has been reduced from SOFR plus 2.00% to a range of SOFR plus 1.75% to 1.875%, depending on the debt outstanding, alongside a 0.10% SOFR adjustment. Currently, the interest rate stands at SOFR plus 1.875%, plus the 0.10% SOFR adjustment.
The amended facility retains its accordion feature, allowing OCSL to potentially expand the facility size to $1,500 million under certain conditions. Notably, the minimum consolidated interest coverage ratio requirement of 2.25x has been removed, reflecting further flexibility in the financial terms.
According to Matt Pendo, President of OCSL, the amendments are expected to reduce interest expenses and other fees, thereby positively impacting net investment income. This strategic adjustment demonstrates Oaktree Specialty Lending's commitment to optimizing its financial structure and supporting its long-term growth objectives.
Oaktree Specialty Lending Corporation is managed by Oaktree Capital Management, L.P., and continues to focus on providing customized credit solutions to companies with limited access to public or syndicated capital markets.
