Oaktree Specialty Lending completes merger with Oaktree Strategic Income II

Oaktree Specialty Lending announced the closing of the previously announced merger with Oaktree Strategic Income II, with OCSL as the surviving company. Based on December 31, 2022 financial information, the combined company has more than $3.3B of assets on a pro forma basis. In connection with the merger, former OSI II stockholders will receive 0.9115 shares of OCSL for each share of OSI II based on the final exchange ratio, subject to payment of cash in lieu of fractional shares. As a result of the merger, legacy OCSL stockholders and former OSI II stockholders own approximately 79.4% and 20.6%, respectively, of the combined company at closing. In addition, in connection with the closing of the merger, and as previously announced, OCSL and Oaktree Fund Advisers amended the existing investment advisory agreement to provide that Oaktree will waive $9M of OCSL’s base management fees as follows: $6M at a rate of $1.5M per quarter in the first year following closing of the merger and $3M at a rate of $750,000 per quarter in the second year following closing of the merger.