Blackstone / GSO Secured Lending Fund — Form 8-K Summary
Reporting event: Form 8-K filed November 13, 2018, reporting events occurring primarily on November 6, 2018. The filing concerns a new revolving credit facility and an anticipated private issuance of common shares; it does not provide quarterly or annual operating results.
Material Financing and Capital Activity
- On November 6, 2018, the Fund entered into a revolving credit facility with Bank of America, N.A. as administrative agent, lead arranger, letter of credit issuer, and lender, together with other lenders.
- The facility has a maximum commitment of $200 million, subject to borrowing-base availability based on investors’ undrawn capital commitments.
- Borrowings bear interest, at the Fund’s election, at adjusted LIBOR plus 2.00% or a reference rate equal to the greatest of prime plus 1.00%, federal funds plus 1.50%, or one-month adjusted LIBOR plus 2.00%.
- The unused commitment fee is 0.30% annually when outstanding principal is below 50% of commitments and 0.25% annually when outstanding principal is at least 50%.
- The stated maturity date is November 6, 2019. The Fund may request two extensions of up to 364 days each, subject to lender consent, customary conditions, and an extension fee.
- The facility is secured by the Fund’s rights to undrawn investor capital commitments and contains customary covenants, lender consent rights, and events of default.
- The filing does not state whether any amount was drawn at closing, nor does it provide current debt, cash, liquidity, or interest-expense balances.
Equity Issuance
- On or about November 6, 2018, the Fund delivered drawdown notices for approximately 5,671,180 common shares at an aggregate offering price of approximately $141.8 million.
- The sale was expected to close on or around November 20, 2018, pursuant to investor subscription agreements.
- Investors are required to fund drawdowns up to their respective capital commitments as needed, generally with at least 10 business days’ notice.
- The issuance is intended to qualify for exemption from Securities Act registration under Section 4(a)(2) and Regulation D and was not publicly solicited.
Profitability, Cash Flow, and Outlook
The filing contains no revenue, net investment income, net income, earnings per share, margins, operating cash flow, portfolio performance, dividend guidance, or management outlook. It also does not describe material changes versus a prior comparable period.
Risks, Contingencies, and Unusual Items
- Availability under the credit facility depends on the borrowing base and the amount of undrawn investor capital commitments.
- The facility is subject to covenants, lender consent rights, and customary events of default, which could accelerate repayment obligations.
- The stated maturity is approximately one year from closing unless extended under the agreement.
- The share issuance remained expected rather than completed as of the filing’s reported information.
Investor Verification Checklist
- Verify the final closing date, share count, and proceeds from the approximately $141.8 million private issuance.
- Review Exhibit 10.1 for detailed borrowing-base provisions, covenants, default triggers, fees, and extension conditions.
- Confirm whether the Fund drew on the facility and the resulting debt, liquidity, and unused availability.
- Review subsequent filings for facility extensions, amendments, repayments, defaults, or changes in investor capital commitments.