Onex highlights new euro CLO; Zais wraps dollar deal; secondary trading volume thins

By Cristal Cody

Tupelo, Miss., June 18 – Onex Credit Partners, LLC offered additional details on its €251.5 million OCP Euro CLO 2020-4 DAC transaction priced earlier in the week.

Onex has priced one euro-denominated CLO offering and two dollar-denominated CLOs so far this year.

The euro offering is the manager’s fourth euro-denominated CLO brought to the primary market.

OCP Euro CLO 2020-4 will be issued by a special purpose vehicle backed by a diversified portfolio of broadly syndicated leveraged loans and supported by a diverse, global group of new and existing investors, according to a news release on Thursday.

“This European CLO is indicative of our continued global growth and builds on the momentum of our two recent U.S. transactions,” Paul Travers, portfolio manager and head of Onex Credit’s CLO business, said in the release.

The CLO priced the AAA-rated notes at Euribor plus 175 basis points.

The deal is expected to close on June 24.

In other activity, Zais Group, LLC closed Thursday on its second deal of the year, the previously reported $278.45 million Zais CLO 15 Ltd./Zais CLO 15 LLC offering sold on June 4.

Zais CLO 15 priced the senior tranche at Libor plus 255.5 bps.

While pricing action remains light, several managers are coming to the market with “print and sprint” deals that close more quickly than transactions before the Covid-19 pandemic began in March, sources report.

More than $28 billion of dollar-denominated CLOs and more than €7 billion of European CLOs have priced year to date.

Secondary prices decline

Meanwhile, secondary prices softened as trading volume thinned on Wednesday, according to Trace data.

The session saw $692.48 million of high-grade CBO/CDO/CLO securities and $266.42 million of lower-rated notes trade.

On Tuesday, $854.83 million of high-grade CBO/CDO/CLO securities and $408.05 million of non-high-grade paper traded, while Monday’s session saw $537.83 million of high-grade issues and $213.46 million of lower-rated paper traded.

High-grade CBO/CDO/CLO paper averaged 96.20 on Wednesday, down from 97.30 on Tuesday and 96.80 on Monday, Trace data shows.

Lower-rated paper averaged 68.10, down from 79.40 on Tuesday and 69.70 at the start of the week.

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