Business Context and Reporting Period
This Form 8-K was filed by Oaktree Capital Group, LLC (NYSE: OAK) on October 17, 2017. The report discloses a material event under Item 7.01 (Regulation FD Disclosure) regarding the closure of an asset purchase agreement.
Key Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. This report focuses on a corporate transaction rather than periodic financial performance data.
Material Changes
On October 17, 2017, Oaktree Capital Management, L.P. ("Oaktree") closed the transactions to become the new investment adviser to two business development companies (BDCs):
- Oaktree Specialty Lending Corporation (NASDAQ: OCSL), formerly known as Fifth Street Finance Corp. (NASDAQ: FSC).
- Oaktree Strategic Income Corporation (NASDAQ: OCSI), formerly known as Fifth Street Senior Floating Rate Corp. (NASDAQ: FSFR).
Guidance, Outlook, and Risks
The filing contains forward-looking statements regarding future results of operations and financial performance. Management notes that actual results may differ materially due to risks and uncertainties, referencing the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2016. The Company does not undertake an obligation to update these statements except as required by law.
Investor Verification Checklist
- Verify the ticker symbol changes for the two BDCs (FSC to OCSL and FSFR to OCSI).
- Confirm the effective date of Oaktree Capital Management, L.P. as the new investment adviser.
- Review the attached press release (Exhibit 99.1) for specific terms of the asset purchase agreement.
- Consult the 2016 Form 10-K for detailed risk factors associated with the BDCs and the advisory transition.