Och-Ziff subsidiaries enter into $350 million credit facility

By Wendy Van Sickle

Columbus, Ohio, April 10 – OZ Management LP and some other subsidiaries of Och-Ziff Capital Management Group LLC entered into a credit agreement providing for a $250 million term loan facility and $100 million revolving facility on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The term loan has a five-year maturity and the revolver has a 4.5-year maturity, both subject to an extension.

Term loans will bear interest at Libor plus 475 basis points.

Revolver borrowings will bear interest at Libor plus a margin ranging from 175 bps to 275 bps, and the commitment fee ranges from 20 bps to 75 bps, both depending on the borrower’s corporate credit rating.

JPMorgan Chase Bank, NA, Goldman Sachs Bank USA and Citigroup Global Markets Inc. are the joint lead arrangers and bookrunners.

JPMorgan is the administrative agent, and Goldman Sachs and Citigroup are the co-syndication agents.

The new senior secured credit agreement replaces Och-Ziff’s existing credit and guaranty agreement dated Nov. 20, 2014.

The borrower must comply with a maximum total net leverage ratio, as of the last day of any fiscal quarter, of 3 times for the first three years and 2.5 times thereafter.

Term loan proceeds will be used with cash on hand to redeem the company’s 4.5% senior notes due 2019 on May 5. Revolver borrowings will be used for working capital and general corporate purposes.

OZ Management is the borrower, with OZ Advisors LP and OZ Advisors II, LP as credit parties.

Och-Ziff is an institutional alternative asset manager based in New York.

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