July 14, 2017 / 11:09 AM / 6 months ago

BRIEF-Fifth Street Asset Management signs asset purchase agreement with Oaktree

July 14 (Reuters) - Fifth Street Asset Management Inc

* Fifth street asset management inc - signed a definitive asset purchase agreement with oaktree capital management, l.p

* Says oaktree will pay gross cash consideration of $320 million in cash to fifth street management llc

* At close oaktree will replace fsm as investment adviser to bdcs and an oaktree affiliate will become their administrator

* Fifth street asset management inc - shares of common stock of fsc and fsfr owned by fifth street holdings l.p. Are not included in deal

* Fifth street asset management - at closing of deal, all current fsc board members except richard p. Dutkiewicz, and all current fsfr board members except richard w. Cohen, will resign

* After close , fsam’s board intends to make an initial cash distribution to fsam stockholders of about $2.75 per class a shares

* Fifth street asset management- under deal, oaktree to become new investment adviser to fifth street finance corp, fifth street senior floating rate corp

* Fifth street asset management - executive officers of fsc and fsfr will resign and will be replaced with certain individuals affiliated with oaktree

* Fsh and fsm have agreed to reimburse up to $5 million of oaktree’s expenses incurred in connection with transaction upon close

* Fifth street asset management inc - at closing john frank is expected to serve as chairman of each bdc board

* Fsh and fsm have agreed to indemnify oaktree, fsc and fsfr for certain liabilities following closing

* $42 million of cash purchase price will be escrowed at closing to support these indemnification obligations

* Fifth street-fsh has also agreed to pledge $35 million of fsc common stock and $10 million of fsfr common stock to support certain indemnification obligations Source text for Eikon: Further company coverage:

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