April 21, 2014 4:24 AM ET

Capital Markets

Company Overview of Oaktree Capital Management, L.P.

Company Overview

Oaktree Capital Management, L.P. is a private equity firm specializing in marketable securities and private investments. The firm’s marketable securities investments include high yield bonds, convertible securities, high-income convertibles, European high yield bonds, and international convertibles. Within high yield bonds, it purchases only debt of solvent United States and Canadian corporations and emphasize senior, cash-paying securities, and thorough diversification. The firm eschews emerging nation debt sector and does not shift adroitly from sector to sector. It invests in senior secured and second lien debt, syndicated mezzanine transactions, senior bank loans, and high yield bonds an...

333 South Grand Avenue

28th Floor

Los Angeles, CA 90071

United States

Founded in 1995

Phone:

213-830-6300

Fax:

213-830-6293

Key Executives for Oaktree Capital Management, L.P.

President
Age: 58
Principal and Chairman
Age: 66
Principal
Age: 54
Principal and Portfolio Manager
Age: 55
Principal
Age: 57
Compensation as of Fiscal Year 2013.

Oaktree Capital Management, L.P. Key Developments

Oaktree Capital Management, L.P., Oaktree Capital II, L.P., Oaktree AIF Investments, L.P., and Oaktree Capital I, L.P. Enter into Credit Agreement with Wells Fargo Bank, National Association and the Other Lenders

On March 31, 2014, Oaktree Capital Management, L.P., Oaktree Capital II, L.P., Oaktree AIF Investments, L.P., and Oaktree Capital I, L.P. entered into a Credit Agreement with Wells Fargo Bank, National Association and the other lenders party thereto. Wells Fargo serves as administrative agent for a 13-bank syndicate and as letter of credit issuer and swing line lender. Each of the Borrowers is an indirect subsidiary of Oaktree Capital Group, LLC. The new Credit Agreement replaces the Borrowers' Credit Agreement dated as of December 21, 2012 with Wells Fargo and the lenders party thereto (the Prior Credit Facility). The Credit Agreement provides for an unsecured term loan of $250 million (the Term Loan), which was fully funded at closing and replaced the term loan under the Prior Credit Facility with a remaining balance of $218.8 million, and the unsecured revolving credit facility of up to $500 million (the Revolver), with an option to increase the availability there under to up to $750 million, which was undrawn at closing and replaced an undrawn revolving credit facility under the Prior Credit Facility. The Revolver includes a $50 million letter of credit sub facility. The loans under the Credit Agreement mature in March 2019, provided that the Borrowers have the option to extend such maturity date by one year if the lenders holding at least 50% of the aggregate amount of the Term Loan and Revolver on the date of the Borrowers' extension request consent to such extension. Borrowings under the Credit Agreement generally bear interest at a spread to either LIBOR or an alternate base rate, depending upon the credit ratings of Oaktree Capital Management, L.P. Based on current credit ratings, the interest rate on borrowings is LIBOR plus 1.0% per annum, and the commitment on the unused portions of the Revolver accrues at a rate of 0.125% per annum. The Borrowers intend to maintain existing interest-rate swaps that, based on the current credit ratings of Oaktree Capital Management, L.P., fix the majority of the Term Loan's annual interest rate at 2.69% through January 2016 and 2.22% for the thirteen months thereafter. The Borrowers may enter into additional interest-rate swaps for all or a portion of the Term Loan's five-year term. Borrowings under the Credit Agreement will be used for working capital and general corporate purposes of the Borrowers and their subsidiaries, including to repay the term loan outstanding under the Prior Credit Facility, to make capital contributions to investment funds, accounts or investment companies managed by a Borrower or certain affiliates of a Borrower, to make permitted distributions or equity repurchases, and for other specified uses. The Credit Agreement provides for certain affirmative and negative covenants, including financial covenants relating to the Borrowers' combined leverage ratio and minimum assets under management. In addition, the Credit Agreement contains customary representations and warranties of the Borrowers, which must be true and correct at the time of any draw under the Revolver or the issuance of a letter of credit. The Credit Agreement also contains customary events of default, in certain cases subject to periods to cure. Upon the occurrence and continuance of an event of default, the required lenders may terminate the commitments under the Credit Agreements and declare the outstanding loans due and payable, require cash collateralization of all outstanding letters of credit, and exercise other rights and remedies. Such termination and declaration will occur automatically in the event of certain insolvency related events of default. On March 31, 2014, the Prior Credit Facility was terminated and refinanced by the Credit Agreement. The Prior Credit Facility was a $750 million senior unsecured revolving and term loan facility that was pre-payable subject to standard breakage provisions and was scheduled to mature in December 2017. At the time of such refinancing, borrowings under the Prior Credit Facility consisted of $218.75 million in term loans and no revolving loans outstanding.

Treehouse Reportedly Interested In Michael Foods

Treehouse Foods, Inc. (NYSE:THS) is considering to make a bid for Michael Foods Group, Inc., according to people familiar with the matter. The deal could be between $2 billion and $2.5 billion. Oaktree Capital Management, L.P. through its portfolio company AdvancePierre Foods, Inc. and Golden Gate Capital are also holding talks to buy Michael Foods, according to sources.

Oaktree Capital Management, L.P. Presents at 5th Annual Marine Money London Ship Finance Forum, Jan-23-2014 10:35 AM

Oaktree Capital Management, L.P. Presents at 5th Annual Marine Money London Ship Finance Forum, Jan-23-2014 10:35 AM. Venue: The Dorchester, Park Lane, London, United Kingdom. Speakers: Andreas Heinrich Friedrich Krämer, Senior Vice President.

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