Onex Credit prices $395.5 million CLO; inflows resume; high-grade secondary active

By Cristal Cody

Tupelo, Miss., June 12 – Onex Credit Partners, LLC priced $395.5 million of notes in the manager’s second CLO offering of the year.

More than $27 billion of dollar-denominated CLOs and over €7 billion of European CLOs have priced year to date, according to market sources.

Meanwhile, leveraged loan funds saw $39 billion of inflows for the past week ended Wednesday, reversing the $42.2 million of outflows seen in the prior week following $25.4 billion of inflows for the week ended May 24, according to a Fitch Ratings report on Friday.

Year to date, leveraged loan outflows total about $16.3 billion.

In other activity, average net losses in portfolios of U.S. broadly syndicated loan CLOs rated by Fitch increased to 1% in May from 0.8% in April, according to a Fitch report.

“CLOs that issued, reissued or reset in 2018 and earlier saw the biggest average net losses, while only 2020 CLOs saw average net gains,” Fitch said.

Recent defaults contributing to losses in the CLOs include LSC Communications in the broadcasting and media sector, CDS U.S. Intermediate Holdings Inc. in the gaming, lodging and entertainment space, Speedcast International Ltd. in the telecommunications sector and Envision Healthcare in the health care space, according to the report.

Looking at the secondary market, securitized paper improved over Thursday’s session, according to Trace data.

High-grade CBO/CDO/CLO paper improved to 96.80 on Thursday from 96.70 on Wednesday and 96.30 on Tuesday and was flat from Monday’s average of 96.80.

Secondary market volume climbed to $827.72 million in high-grade CBO/CDO/CLO securities on Thursday.

Volume was the highest seen over the week, compared to $416.62 million on Wednesday, $441.24 million on Tuesday and $471.57 million on Monday, Trace data shows.

Average prices for lower-rated paper rose to 81 over Thursday’s session. Non-high-grade CBO/CDO/CLO paper averaged 79 on Wednesday, 80.70 on Tuesday and 81.70 on Monday.

Trading volume in non-high-grade CBO/CDO/CLO paper declined to $180.22 million on Thursday from $300.39 million on Wednesday, $302.62 million on Tuesday and $182.44 million on Monday.

Onex prints OCP CLO 2020-19

Onex Credit Partners priced $395.5 million of notes due July 20, 2031 in the OCP CLO 2020-19 Ltd./OCP CLO 2020-19 LLC transaction, according to market sources.

The CLO sold $222 million of class A-1 floating-rate notes at Libor plus 175 basis points at the top of the capital stack.

Natixis Securities Americas LLC was the placement agent.

The notes are backed primarily by broadly syndicated senior secured corporate loans.

The Toronto-based private equity firm priced one new dollar-denominated CLO in 2019.

© 2015 Prospect News.
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