Oaktree Specialty Lending Corp. priced an underwritten public offering of $300 million aggregate principal amount of 3.500% notes due Feb. 25, 2025, at a price to the public of 99.153% of the principal amount.
The offering is expected to close Feb. 25.
Interest on the notes will be paid on Feb. 25 and Aug. 25 of each year, starting Aug. 25, 2020. The notes may be redeemed in whole or in part at the company's option at any time at par plus a make-whole premium, if applicable.
J.P. Morgan Securities LLC, BofA Securities Inc., RBC Capital Markets LLC and ING Financial Markets LLC are acting as joint book-running managers for the offering. Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., MUFG Securities Americas Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co., CIT Capital Securities LLC, R. Seelaus & Co. LLC, Janney Montgomery Scott LLC, Jefferies LLC, JMP Securities LLC, Keefe Bruyette & Woods Inc. and Wells Fargo Securities LLC are serving as co-managers.
Oaktree Specialty Lending expects to use net proceeds of the offering to reduce outstanding debt and for general corporate purposes. As of Dec. 31, 2019, the company's outstanding debt included $75.0 million of 5.875% unsecured notes due Oct. 30, 2024, and $86.3 million of 6.125% unsecured notes due April 30, 2028. It also included $377.8 million of borrowings under a credit facility that matures Feb. 25, 2024.
Oaktree Specialty Lending will redeem 100% of the issued and outstanding 6.125% notes due 2028 on March 13. The redemption price per note will be $25 plus accrued and unpaid interest to, but not including, the redemption date. Following the redemption, the notes will be delisted from the Nasdaq Stock Market LLC.
The company previously disclosed that it will redeem 100% of the issued and outstanding 5.875% notes due 2024 on March 2.