Oaktree Specialty Lending prices $300M notes due 2030

LOS ANGELES - Oaktree Specialty Lending Corporation (NASDAQ:OCSL), a finance firm focused on customized credit solutions with a market capitalization of $1.32 billion, has announced the pricing of a $300 million note offering with a 6.340% interest rate, maturing on February 27, 2030. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 7.51, indicating robust liquidity. The notes can be redeemed any time at the company’s discretion at par plus a "make-whole" premium.

The company intends to use the proceeds from this offering to pay down debt from its revolving credit facilities and for general corporate purposes. The transaction is set to close on February 27, 2025, subject to standard closing conditions.

A consortium of financial institutions, including SMBC Nikko Securities America, Inc., BNP Paribas (OTC:BNPQY) Securities Corp., and several others, are managing the book-running, with additional firms such as KeyBanc Capital Markets Inc. and Jefferies LLC serving as co-managers.

Investors are encouraged to review the investment details and risks outlined in the pricing term sheet, preliminary prospectus supplement, and accompanying prospectus, all filed with the Securities and Exchange Commission.

Oaktree Specialty Lending, a business development company, provides a range of financing solutions to companies with limited access to public or syndicated capital markets. These solutions range from senior and junior secured loans to unsecured loans and preferred equity investments. InvestingPro analysis reveals the company has maintained dividend payments for 18 consecutive years, currently offering an attractive 16.59% dividend yield. For deeper insights into OCSL’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The press release includes forward-looking statements regarding the company’s future operating results, business prospects, and the impact of its investments. With trailing twelve-month revenue of $370.33 million and a P/E ratio of 23.99, OCSL demonstrates solid financial performance. However, these are subject to various risks and uncertainties that could cause actual results to differ materially from projections. Discover more detailed financial metrics and expert analysis with InvestingPro, offering comprehensive insights across 1,400+ US equities.

This news article is based on a press release statement from Oaktree Specialty Lending Corporation.

In other recent news, Oaktree Specialty Lending Corp has experienced a series of noteworthy developments. JPMorgan downgraded the company from an Overweight to a Neutral rating, adjusting the price target from $17.00 to $15.00. This decision came in light of a 7.8% decrease in the company’s net asset value (NAV) for the fiscal year 2024, driven by portfolio markdowns and realized losses. Despite these challenges, Oaktree Specialty Lending managed to cover its dividend through net investment income by waiving a portion of incentive fees for the second consecutive quarter. JPMorgan’s analysis noted the company’s continued efforts in restructuring, although new additions to non-accrual status were observed. The bank also revised its forward NAV per share estimates, reflecting the markdowns from the September quarter, and lowered its NII per share estimates due to expectations of tighter spreads and lower base rates. The revised estimates do not include further fee waivers, as management has not committed to maintaining full dividend coverage through NII. Decisions on potential fee waivers are anticipated to be made quarterly. Without a clear path to NAV stability and full dividend coverage, JPMorgan sees a re-rating of Oaktree Specialty Lending’s shares as unlikely, leading to the downgrade.

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