Oaktree Strategic Credit Fund Secures Enhanced $400 Million Loan Facility
Oaktree Strategic Credit Fund, a non-traded business development company advised by Oaktree Fund Advisors, has amended its existing loan financing and servicing agreement for a fourth time. The activity bolsters the company’s financial flexibility, extends key operational timelines, and reduces borrowing costs.
The fourth amendment was entered into with OSCF Lending IV SPV, LLC, as borrower, and a consortium of financial partners, most notably Deutsche Bank AG, New York Branch, as facility agent, and the newly appointed Computershare Trust Company NA.
With the amendment, the BDC:
- Increased the commitment under the loan agreement from $300 million to a robust$400 million;
- Reduced its interest rate margin on secured overnight financing loans from4% to 1.6%;
- Extended the reinvestment period by more than a year, moving it from Feb. 15, 2027, toJuly 25, 2028;
- Extended the final maturity date of the loan agreement from Feb. 15, 2029, toJuly 25, 2029; and
- As part of the restructuring, Computershare Trust Company was appointed to replace Deutsche Bank National Trust Company as both the collateral agent and collateral custodian.
Earlier this month, the BDC amended its loan and security agreement, as reported by AltsWire.
The company reported total assets of $6.18 billion as of March 31, 2025, an approximate 18.4% increase from its $5.22 billion in assets six months prior.
The BDC aims to invest in a diversified portfolio of income-generating private credit opportunities, with the flexibility to invest in high-quality public debt, and enhance total return and provide liquidity during periods of market dislocation.
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