OCSL Urges Stockholders to Approve Below-NAV Stock Issuance

Ticker: OCSL · Form: DEFA14A · Filed: Jan 30, 2024 · CIK: 1414932

Oaktree Specialty Lending CORP DEFA14A Filing Summary
FieldDetail
CompanyOaktree Specialty Lending CORP (OCSL)
Form TypeDEFA14A
Filed DateJan 30, 2024
Risk Levelhigh
Pages3
Reading Time3 min
Sentimentmixed

Complexity: simple

Sentiment: mixed

Topics: proxy-vote, share-issuance, corporate-governance, dilution-risk

TL;DR

**OCSL needs your vote to sell stock below NAV, which could dilute your shares.**

AI Summary

Oaktree Specialty Lending Corporation (OCSL) is urgently requesting stockholders to vote FOR a proposal at a Special Meeting on March 4, 2024, at 10:30 a.m. Pacific Time. The proposal seeks authorization for OCSL, with Board approval, to sell or issue common stock at a price below its current net asset value. This matters to stockholders because approving this could dilute the value of their existing shares if new shares are issued at a discount, potentially impacting their investment's worth.

Why It Matters

Approving the proposal allows OCSL to issue new shares below their current book value, which could dilute the ownership and value for existing shareholders.

Risk Assessment

Risk Level: high — Authorizing the sale of shares below Net Asset Value (NAV) carries a high risk of diluting existing shareholder value.

Analyst Insight

An investor should carefully review the full proxy materials to understand the potential dilution impact of issuing shares below NAV and consider if the strategic benefits outweigh the risks before casting their vote.

Key Players & Entities

FAQ

What is the primary proposal Oaktree Specialty Lending Corporation is asking stockholders to vote on?

Oaktree Specialty Lending Corporation (OCSL) is asking stockholders to consider and vote on a proposal to authorize OCSL, with the approval of the Board of Directors, to sell or otherwise issue shares of its common stock at a price below its then current net asset value.

When and where will the Special Meeting of Stockholders for OCSL be held?

The Special Meeting of Stockholders of OCSL will be held virtually on March 4, 2024, at 10:30 a.m. Pacific Time (1:30 p.m. Eastern Time) at the website: www.virtualshareholdermeeting.com/ocsl2024sm.

What is the Board of Directors' recommendation regarding the proposal?

The Board of Directors recommends that stockholders respond to this solicitation by voting FOR the proposal described in the previously provided proxy statement.

Why is OCSL emphasizing the urgency of stockholder participation?

OCSL is emphasizing the urgency because stockholder participation is 'urgently needed to approve OCSL’s proposal' and to ensure that a quorum is achieved for the meeting.

What was Oaktree Specialty Lending Corporation's former name?

Oaktree Specialty Lending Corporation's former name was Fifth Street Finance Corp., with a name change occurring on September 26, 2013.

Filing Stats: 803 words · 3 min read · ~3 pages · Grade level 8.9 · Accepted 2024-01-30 16:15:58

Filing Documents

From the Filing

DEFA14A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934 Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material under 240.14a-12 Oaktree Specialty Lending Corporation (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): No fee required. Fee paid previously with preliminary materials. Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. URGENT REQUEST REGARDING OUR SPECIAL MEETING PROXY YOUR VOTE IS NEEDED! Our Board of Directors recommends that you respond to this solicitation by voting FOR the proposal described in the previously provided proxy statement. Dear Stockholder, We are pleased to invite you to participate at the Special Meeting of Stockholders of Oaktree Specialty Lending Corporation (OCSL), to be held virtually on March 4, 2024 at 10:30 a.m. Pacific Time (1:30 p.m. Eastern Time) at the following website: www.virtualshareholdermeeting.com/ocsl2024sm. Your participation is urgently needed to approve OCSLs proposal outlined in the proxy materials previously sent to you. We kindly request that you review these materials and cast your vote by proxy in advance of the meeting date to ensure that a quorum is achieved. At the meeting, you will be asked to consider and vote on a proposal to authorize OCSL, with the approval of the Board of Directors, to sell or otherwise issue shares of its common stock at a price below its then current net asset value (NAV) per share, provided that the number of shares issued does not exceed 25% of its then outstanding common stock. While OCSL has no immediate plans to issue any shares of its common stock below NAV, OCSL is seeking stockholder approval now in order to provide flexibility if it desires in the future to issue shares of its common stock below NAV per share, which typically must be undertaken quickly. Your vote and participation are very important to us, no matter how many or few shares in OCSL you own. If you do not vote, the effect is the same as voting against this proposal. We encourage you to review the enclosed proxy materials carefully and vote your shares using any one of the methods described below. Your prompt response will help us meet stockholder approval requirements before the meeting, thereby reducing the risk of postponement and additional solicitation costs. If you have any questions about voting, please call our proxy solicitor, Broadridge, at 1-844-557-9030. Thank you for your continued support of OCSL. Sincerely, Armen Panossian Mathew Pendo President FOUR WAYS TO VOTE ONLINE PHONE QR CODE MAIL WWW.PROXYVOTE.COM WITH A PROXY CARD WITH A SMARTPHONE VOTE PROCESSING PROXY QUESTIONS? Please have your proxy card in hand Call 1-800-690-6903 with Vote by scanning the Mark, sign and date Call 1-844-557-9030 when accessing the website. There a touch-tone phone to vote Quick Response Code or your ballot and return are easy-to-follow directions to using an automated system. QR Code on the Proxy it in the postage-paid help you complete the electronic Card/VIF enclosed. envelope provided. voting instruction form. BE THE VOTE THAT COUNTS VOTE BEFORE MARCH 4, 2024 SAMPLE-EPR Your vote is importantplease vote your shares today. The Oaktree Specialty Lending Corporation special meeting will be held virtually on March 4, 2024. Whether or not you plan to attend, your vote is very important. You can vote your shares by internet, telephone, QR code or mail. 0000 0000 0000 0000 Simply follow the instructions on the enclosed form. For your 0000 0000 0000 0000 convenience, weve highlighted where you can find your unique NOTE: This is not an actual Control Number. Please refer to the proxy card for Control Number. If you have any questions or need assistance, your unique Control Number. please call 1-844-557-9030. FOUR WAYS TO VOTE ONLINE PHONE QR CODE MAIL 0000 0000 0000 0000 WWW.PROXYVOTE.COM WITHOUT A PROXY CARD WITH A SMARTPHONE VOTE PROCESSING 0000 0000 0000 0000 Please have your proxy card in Call 1-844-557-9030 Vote by scanning the Mark, sign and date hand when accessing the website. Monday to Friday, 9:00 a.m. Quick Response Code or NOTE: This is not an actual Control Number. There are easy-to-follow directions to 9:00 p.m. ET to speak with QR Code on the Proxy your ballot and return it in the postage-paid Please refer to the voting instruction form to help you complete the electronic a proxy specialist. Card/VIF enclosed. envelope provided. for your unique Control Number. voting instruction form. WITH A PROXY CARD Call 1-800-690-6903

View Full Filing

View this DEFA14A filing on SEC EDGAR

View on Read The Filing