Oaktree Specialty Lending Corporation Announces Permanent Base Management Fee Reduction
April 30 2024 - 6:01AM
Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“OCSL” or the
“Company”) today announced a permanent reduction in its base
management fee. Effective July 1, 2024, the base management fee
will be reduced to an annual rate of 1.00% from 1.50% on gross
assets, including any investments made with borrowings, but
excluding any cash and cash equivalents. The new base management
fee will be calculated net of the base management fees that Oaktree
Fund Advisers, LLC (“Oaktree”), OCSL’s investment adviser, waived
as part of the merger of Oaktree Strategic Income II, Inc. into the
Company (the “OSI2 Merger”), which expire on January 23, 2025.
The new base management fee is expected to increase OCSL’s net
investment income per share by approximately $0.15 annually. This
equates to an estimated 0.8% improvement in the Company’s return on
adjusted net investment income, representing a 7% increase from
current levels.
Armen Panossian, Chief Executive Officer and Chief Investment
Officer of OCSL, said, “We believe this permanent change to our fee
structure demonstrates Oaktree’s strong commitment to aligning its
interests with shareholders. We have successfully grown OCSL since
taking over as its investment adviser and this reduction in
fees means that a larger portion of our investment income will flow
to our shareholders. Today’s announcement significantly enhances
our earnings power and reinforces our dedication to maximizing
shareholder value over the long term.”
In addition, Oaktree waived additional base management fees such
that the total amount of waived base management fees (including
those previously waived) will be $1.5 million for each of the three
months ended March 31, 2024 and June 30, 2024.
About Oaktree Specialty Lending Corporation
Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a
specialty finance company dedicated to providing customized
one-stop credit solutions to companies with limited access to
public or syndicated capital markets. OCSL’s investment objective
is to generate current income and capital appreciation by providing
companies with flexible and innovative financing solutions
including first and second lien loans, unsecured and mezzanine
loans, and preferred equity. OCSL is regulated as a business
development company under the Investment Company Act of 1940, as
amended, and is managed by Oaktree Fund Advisors, LLC, an affiliate
of Oaktree Capital Management, L.P. For additional information,
please visit OCSL’s website at www.oaktreespecialtylending.com.
Forward-Looking Statements
Some of the statements in this press release constitute
forward-looking statements because they relate to future events,
future performance or financial condition. The forward-looking
statements may include statements as to: future operating results
of the Company and distribution projections; business prospects of
the Company and the prospects of its portfolio companies; and the
impact of the investments that the Company expects to make. In
addition, words such as “anticipate,” “believe,” “expect,” “seek,”
“plan,” “should,” “estimate,” “project” and “intend” indicate
forward-looking statements, although not all forward-looking
statements include these words. The forward-looking statements
contained in this press release involve risks and uncertainties.
Certain factors could cause actual results and conditions to differ
materially from those projected, including the uncertainties
associated with (i) changes in the economy, financial markets and
political environment, including the impacts of inflation and
elevated interest rates; (ii) risks associated with possible
disruption in the operations of the Company or the economy
generally due to terrorism, war or other geopolitical conflict
(including the current conflicts in Ukraine and Israel), natural
disasters, pandemics or cybersecurity incidents; (iii) future
changes in laws or regulations (including the interpretation of
these laws and regulations by regulatory authorities); (iv)
conditions in theCompany’s operating areas, particularly with
respect to business development companies or regulated investment
companies; and (v) other considerations that may be disclosed from
time to time in the Company’s publicly disseminated documents and
filings. The Company has based the forward-looking statements
included in this press release on information available to it on
the date of this press release, and the Company assumes no
obligation to update any such forward-looking statements. The
Company undertakes no obligation to revise or update any
forward-looking statements, whether as a result of new information,
future events or otherwise, you are advised to consult any
additional disclosures that it may make directly to you or through
reports that the Company in the future may file with the Securities
and Exchange Commission, including annual reports on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form 8-K.
Contacts
Investor Relations:Michael Mosticchio(212)
284-7869mmosticchio@oaktreecapital.com
Media Relations:Financial Profiles, Inc.Moira Conlon(310)
478-2700mediainquiries@oaktreecapital.com
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