GREENWICH, CT, Oct. 17, 2017 (GLOBE NEWSWIRE) -- Fifth Street Asset Management (NASDAQ:FSAM) announced that it has completed its previously disclosed transaction with Oaktree Capital Management, L.P., an affiliate of Oaktree Capital Group, LLC (NYSE:OAK), whereby Oaktree has become the new investment adviser to two Business Development Companies (“BDCs”): Oaktree Specialty Lending Corporation (NASDAQ:OCSL), previously Fifth Street Finance Corp. (NASDAQ:FSC); and Oaktree Strategic Income Corporation (NASDAQ:OCSI), previously Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR).
“On behalf of the Fifth Street Board of Directors, and for me personally, I want to thank everyone who played a role in the formation, development, support and now transition of our company and BDCs,” said Leonard M. Tannenbaum, FSAM’s Chairman and Chief Executive Officer. “I am more confident than ever that now is the right time to take this step and that Oaktree’s expertise and long-term investment approach should provide enhanced returns for the BDC shareholders going forward.”
Under the terms of the agreement, Oaktree paid gross cash consideration of $320 million in cash to Fifth Street Management LLC (“FSM”), an affiliate of FSAM. FSM ceased to be the investment adviser for FSC and FSFR upon the closing of the transaction and FSC and FSFR will trade under the symbols OCSL and OCSI, respectively.
The FSAM Board of Directors will continue to work to maximize stockholder interests with a goal of returning value to our stockholders. FSAM intends to update stockholders regarding future decisions of the FSAM Board in the near term.
Morgan Stanley & Co. LLC served as financial advisor to FSAM, Houlihan Lokey served as financial advisor to the Special Committee of FSAM’s Board of Directors and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to FSAM and the Special Committee of FSAM’s Board of Directors.
About Fifth Street Asset Management
Prior to the closing of the asset sale to Oaktree, Fifth Street Asset Management Inc. (NASDAQ:FSAM) was a nationally recognized credit-focused asset manager. The firm managed two publicly traded business development companies, Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp. The Fifth Street platform provided innovative and customized financing solutions to small and mid-sized businesses across the capital structure through complementary investment vehicles and co-investment capabilities. With a nearly 20-year track record focused on disciplined credit investing across multiple economic cycles, Fifth Street was led by a seasoned management team that issued billions of dollars in public equity, private capital and public debt securities. Fifth Street's national origination strategy, proven track record and established platform have allowed the firm to surpass $10 billion of loan commitments since inception. For more information, please visit fsam.fifthstreetfinance.com.
