Oaktree Specialty Lending upsized and extended its senior secured revolving credit facility, increasing total commitments under the facility from $600 million to $680 million.
The final maturity date was extended from November 2021 to February 2024. The interest rate on the amended facility was reduced from LIBOR plus 2.25% to 2.75% to LIBOR plus 2.00% to 2.25%, depending on the senior debt coverage ratio. As of today, the interest rate is LIBOR plus 2.00%.
In addition, the asset coverage covenant of the amended facility will automatically be reduced from 200% to 165% once the modified asset coverage requirements under the Investment Company Act of 1940 become applicable to Oaktree Specialty Lending on February 1, 2020.
The amended facility will continue to include an accordion feature which would allow Oaktree to increase the size of the facility to a maximum of $1.02 billion, under certain conditions.
Matt Pendo, Oaktree chief operating officer, commented, “We are pleased to have amended our credit facility, achieving favorable pricing and terms, increasing its size, extending the maturity date and enhancing flexibility by modifying the asset coverage covenant. We appreciate the continued support from our banking partners to complete these amendments, which we believe reflects the confidence that they have in Oaktree as a manager and the significant progress we have made in repositioning OCSL’s portfolio.”