By Cristal Cody
Tupelo, Miss., Feb. 6 – Oak Hill Advisors LP priced $610.85 million of notes in a refinancing of the manager’s 2016 vintage collateralized loan obligation, according to additional details in a notice of proposed second supplemental indenture on Wednesday.
OHA Loan Funding 2016-1, Ltd. sold $384.6 million of class A-R senior secured floating-rate notes at Libor plus 126 basis points; $62.1 million of class B-1-R senior secured floating-rate notes at Libor plus 160 bps; $10 million of 2.92% class B-2-R senior secured fixed-rate notes; $36.05 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 195 bps; $36.05 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 300 bps; $24.05 million of class E-R junior secured deferrable floating-rate notes at Libor plus 635 bps and $58 million of subordinated notes.
J.P. Morgan Securities LLC was the refinancing placement agent.
The maturity was extended to Jan. 20, 2033 from Jan. 20, 2028.
The reset CLO has a two-year non-call period and a four-year reinvestment period.
In the original $609 million transaction issued Dec. 7, 2016, the CLO priced $370 million of class A senior secured floating-rate notes at Libor plus 143 bps; $60 million of class B-1 senior secured floating-rate notes at Libor plus 180 bps; $24 million of 3.37% class B-2 senior secured fixed-rate notes; $36 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 255 bps; $33 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 375 bps; $28 million of class E junior secured deferrable floating-rate notes at Libor plus 650 bps and $58 million of subordinated notes.
Proceeds will be used to redeem the outstanding notes.
The CLO is backed primarily by broadly syndicated senior secured corporate loans.
Oak Hill Advisors is an investment firm based in New York City.
| Issuer: | OHA Loan Funding 2016-1, Ltd.
|
| Amount: | $610.85 million refinancing
|
| Maturity: | Jan. 20, 2033
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Oak Hill Advisors LP
|
| Call feature: | Two years
|
| Settlement date: | Feb. 7
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $384.6 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 126 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | $62.1 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2-R notes
|
| Amount: | $10 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.92%
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $36.05 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $36.05 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $24.05 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 635 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $58 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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