DEBT OBLIGATIONS AND CREDIT FACILITIES

The Company had the following debt obligations:



	As of December 31,
	2013		2012
$75,000, 5.03%, issued in June 2004, payable in seven equal annual installments starting June 14, 2008	$	10,714	$	21,429
$50,000, 6.09%, issued in June 2006, payable on June 6, 2016	50,000		50,000
$50,000, 5.82%, issued in November 2006, payable on November 8, 2016	50,000		50,000
$250,000, 6.75%, issued in November 2009, payable on December 2, 2019	250,000		250,000
$250,000, rate as described below, term loan issued in December 2012, payable 2.5% per quarter through September 2017, final $125,000 payment on December 21, 2017	218,750		243,750
Total remaining principal	$	579,464	$	615,179

As of December 31, 2013, future principal payments of debt obligations were as follows:



2014	$	35,714
2015	25,000
2016	125,000
2017	143,750
2018	—
Thereafter	250,000
Total	$	579,464

The Company was in compliance with all financial covenants associated with its senior notes and credit facilities as of and for the years ended December 31, 2013 and 2012.

In December 2012, the Company's subsidiaries 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 a bank syndicate for senior unsecured credit facilities (the “Credit Facility”), consisting of a $250 million fully-funded term loan (the “Term Loan”) and a $500 million revolving credit facility (the “Revolver”), each with a five-year term. The Credit Facility replaced the amortizing term loan, which had a principal balance of $247.5 million, and the undrawn revolver under the Company's prior credit facility. The Term Loan amortizes quarterly in an amount equal to 2.5% of the original principal amount of $250 million, with principal payments due in March, June, September and December of each year, and the remaining principal payable upon maturity in December 2017. Borrowings under the Credit Facility generally bear interest at a spread to either LIBOR or an alternative base rate. Based on the current credit ratings of Oaktree Capital Management, L.P., the interest rate on borrowings is LIBOR plus 1.00% per annum and the commitment fee on the unused portions of the Revolver is 0.125% per annum. Utilizing interest-rate swaps, the bulk of the first four years of the Term Loan's annual interest rate is fixed at 2.60%, based on the current credit ratings of Oaktree Capital Management, L.P. The Credit Facility contains customary financial covenants and restrictions, including ones regarding a maximum leverage ratio of 3.0-to-1.0, minimum fixed charge coverage ratio of 2.5-to-1.0 and minimum required levels of assets under management and net worth (as defined in the credit agreement) of $50 billion and $600 million, respectively. As of December 31, 2013, the Company had no outstanding borrowings under the Revolver and was able to draw the full amount available without violating any financial covenants.

In January 2011, the Company's subsidiaries 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 facility with a bank syndicate, consisting of the $300 million five-year fully-funded term loan and a $250 million three-year revolving credit facility. The Company was required to make quarterly principal payments of $7.5 million in respect of the term loan in March, June, September and December, with a final payment of $150 million, constituting the remainder of the term loan, due on January 7, 2016. This credit facility was terminated and replaced by the Credit Facility in December 2012, with proceeds from the Term Loan used to pay off the $247.5 million outstanding balance under this credit facility.

Credit Facilities of the Consolidated Funds

Certain consolidated funds maintain revolving credit facilities to fund investments between capital drawdowns. These facilities generally (a) are collateralized by the unfunded capital commitments of the consolidated funds' limited partners, (b) bear an annual commitment fee based on unfunded commitments, and (c) contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments, and portfolio asset dispositions. Additionally, certain consolidated funds have issued senior variable rate notes to fund investments on a longer term basis, generally up to ten years. One consolidated VIE, MM CLO, has secured warehouse financing pursuant to which it has issued senior variable rate notes. The obligations of the consolidated funds are nonrecourse to the Company. For all periods presented, carrying value approximates fair value of the credit facilities and senior variable rate notes due to the short-term nature or recent issuance date. The credit facilities and senior variable rate notes are Level III valuations and were valued using a discounted cash flow analysis. As of December 31, 2013, the consolidated funds were in compliance with all covenants.

The consolidated funds had the following revolving credit facilities and term loans outstanding:



Credit Agreement	Outstanding Amount as of				Facility Capacity		LIBOR Margin ⁽¹⁾		Maturity	Commitment Fee Rate		L/C Fee ⁽²⁾
Credit Agreement	December 31, 2013		December 31, 2012		Facility Capacity		LIBOR Margin ⁽¹⁾		Maturity	Commitment Fee Rate		L/C Fee ⁽²⁾
Credit facility ⁽³⁾	$	434,000	$	63,000	$	435,000	1.45	%	11/14/2018	N/A		N/A
Senior variable rate notes ⁽³⁾	249,500		249,500		$	249,500	1.55	%	10/20/2022	N/A		N/A
Senior variable rate notes ⁽³⁾	498,916		—		$	500,000	1.20	%	4/20/2023	N/A		N/A
Senior variable rate notes ⁽³⁾	402,375		—		$	402,500	1.20	%	7/20/2023	N/A		N/A
Senior variable rate notes ⁽³⁾	64,500		—		$	64,500	1.65	%	7/20/2023	N/A		N/A
Senior variable rate notes⁽³⁾⁽⁴⁾	—		—		$	126,000	Variable		12/23/2018	Variable		N/A
Revolving credit facility	400,000		—		$	500,000	1.60	%	6/26/2015	0.25	%	N/A
Multi-currency term loan ⁽⁵⁾	—		49,158		$	275,000	3.00	%	N/A	N/A		N/A
Revolving credit facility	67,000		38,000		$	150,000	1.75	%	12/15/2014	0.35	%	N/A
Revolving credit facility	—		8,625		$	125,000	1.75	%	5/20/2014	0.35	%	N/A
Revolving credit facility	—		19,400		$	55,000	2.00	%	12/15/2015	0.35	%	2.00	%
Revolving credit facility	—		—		$	40,000	1.50	%	12/5/2014	0.30	%	1.50	%
Euro-denominated revolving credit facility	13,090		63,942		€	100,000	1.75	%	12/17/2015	0.30	%	2.00	%
Revolving credit facility	2,800		—		$	10,000	2.25	%	9/1/2014	0.38	%	N/A
Revolving credit facility	165,000		—		$	350,000	1.65	%	3/22/2015	0.25	%	N/A
Revolving credit facility	—		—		$	20,000	2.00	%	1/31/2015	0.35	%	N/A
Revolving credit facility	—		—		$	30,000	1.50	%	12/11/2015	0.20	%	N/A
	$	2,297,181	$	491,625


(1)	The facilities bear interest, at the borrower's option, at (a) an annual rate of LIBOR plus the applicable margin or (b) an alternate base rate, as defined in the respective credit agreement.


(2)	Certain facilities allow for the issuance of letters of credit at an applicable annual fee. As of December 31, 2013 and 2012, outstanding standby letters of credit totaled $55,954 and $76,975, respectively.


(3)	The credit facility is collateralized by the portfolio investments and cash and cash-equivalents of the fund.


(4)	The LIBOR margin is determined based on a formula defined in the borrowing agreement which incorporates different borrowing values based on the characteristics of collateral investments purchased. The unused commitment fee rate ranges from 0% to 2.0%.


(5)	The loan was fully repaid and terminated on September 20, 2013.