Business Context and Reporting Period
This Form 8-K is filed by Fifth Street Finance Corp. (not Oaktree Specialty Lending Corp.) with a report date of September 9, 2009. The filing addresses the termination of a material definitive agreement regarding a revolving credit facility.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, or cash flow data. Specific debt and liquidity metrics mentioned include:
- Terminated Facility: $50 million revolving credit facility with Bank of Montreal.
- Interest Rate (Terminated): LIBOR + 3.25%.
- Utilization: The facility was undrawn since being paid down in July 2009.
- Termination Penalties: $0 (No early termination penalties incurred).
Material Changes
On September 9, 2009, Fifth Street Finance Corp. notified Bank of Montreal of the termination of its $50 million revolving credit facility, effective September 16, 2009. The facility was originally scheduled to expire on December 29, 2009. This action was taken because the facility remained undrawn and the company received a non-binding commitment for a replacement facility.
Guidance, Outlook, and Risks
New Financing Commitment: The company received a non-binding commitment letter for a new three-year credit facility of $50 million, featuring an accordion option to expand up to $100 million.
Risks and Contingencies: The new facility is subject to the execution of definitive documentation and other conditions. The filing explicitly states that no assurance can be given that definitive documentation will be executed, that terms will match the commitment letter, or that the facility will occur at all.
Investor Verification Checklist
- Verify the execution of definitive documentation for the new $50 million credit facility.
- Confirm the final terms of the new facility match the non-binding commitment letter.
- Monitor the effective date of the termination (September 16, 2009) to ensure no unexpected liabilities arise.
- Review the press release (Exhibit 99.1) for additional details on the new lender.