MP Senior Credit prices; NewMark offers $400 million; Onex discusses firm's largest deal

By Cristal Cody

Tupelo, Miss., May 23 - More than $44 billion of CLOs have priced year to date following a $1 billion deal from Onex Credit Partners LLC, according to market sources on Friday.

Also in the primary market late in the week, MP Senior Credit Partners LP brought the firm's first offering in 2014, a $357.95 million short duration CLO, according to a market source.

In addition, Crescent Capital Group LP priced the Atlas Senior Loan Fund V, Ltd./Atlas Senior Loan Fund V, LLC CLO transaction via Barclays, according to a market source. Final pricing details were not available by press-time.

Onex Credit Partners' previously announced CLO is the largest deal to price year to date, according to market sources.

Onex Corp. said in a news release on Friday that credit investing arm Onex Credit Partners' private placement transaction is the firm's largest CLO deal to date.

Onex Credit Partners expects to have about $200 million invested in the firm's six CLOs upon settlement of the OCP CLO 2014-6 Ltd./OCP CLO 2014-6 Corp. deal, which includes a $92 million equity investment from the firm, according to the release.

The Toronto-based private equity firm said that any future CLO offerings will be made in similar private placement transactions.

Looking ahead, about $11 billion of CLO transactions are in the pipeline, a source said.

NewMark Capital Management, LLC plans to offer $400 million of notes in a CLO deal, according to a market source.

MP Senior Credit prices

MP Senior Credit Partners sold $357.95 million of notes due July 15, 2023 in the CLO offering, according to a market source.

Gallatin CLO VII 2014-1, Ltd./Gallatin CLO VII 2014-1, LLC priced $2.25 million of class X senior secured floating-rate notes (Aaa) at Libor plus 100 bps; $227.5 of class A senior secured floating-rate notes (Aaa) at Libor plus 127 bps; $29.4 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 205 bps; $4.6 million of 3.791% class B-2 senior secured fixed-rate notes (Aa2); $20 million of class C deferrable floating-rate notes (A2) at Libor plus 290 bps; $25 million of class D deferrable floating-rate notes (Baa3) at Libor plus 376 bps; $17.5 million of class E deferrable floating-rate notes (Ba3) at Libor plus 567 bps and $6 million of class F deferrable floating-rate notes (B2) at Libor plus 575 bps.

The deal included $25.7 million of subordinated notes in the equity tranche.

The class A notes may include additional interest amount after the payment date in July 2018.

GreensLedge Capital Markets LLC was the placement agent.

MP Senior Credit Partners will manage the CLO.

The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans and eligible investments.

New York City-based MP Senior Credit Partners brought two CLO deals in 2013.

NewMark preps CLO

NewMark Capital Management intends to price $400 million of notes due June 30, 2026 in the NewMark Capital Funding 2014-2 CLO Ltd./NewMark Capital Funding 2014-2 CLO LLC transaction, according to a market source.

The deal includes $195.75 million of class A-1 floating-rate notes (/AAA/); $15 million of class A-2A floating-rate notes (/AAA/); $2.25 million of class A-2B floating-rate notes (/AAA/); $28 million of class A-F fixed-rate notes (/AAA/) and $5 million of class A-X floating-rate notes (/AAA/) at the top of the structure.

The offering also includes $27 million of class B-1 floating-rate notes (/AA/); $24 million of class B-F fixed-rate notes (/AA/); $26 million of class C deferrable floating-rate notes (/A/); $20 million of class D deferrable floating-rate notes (/BBB/); $20 million of class E deferrable floating-rate notes (/BB-/) and $37 million of subordinated notes.

Jefferies LLC is the placement agent.

NewMark Capital Management will manage the CLO. Guggenheim Partners Investment Management LLC is the designated back-up manager.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

NewMark Capital Management, an affiliate of investment firm HillMark Capital Management, LP, brought one CLO deal in 2013.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.