Onex does IPO for fund investing in leveraged senior debt obligations

By Sara Rosenberg

New York, Oct. 29 - Onex Credit Partners LLC is doing an up to C$300 million initial public offering of units of its Credit Strategy Fund, which will be comprised primarily of senior debt obligations of non-investment grade U.S. issuers, according to a news release.

Investments for the fund's portfolio will generally meet the following criteria: high levels of asset and/or cash flow coverage; attractive total return potential through a combination of current income and capital appreciation; and an anticipated company-specific event that is expected to trigger an increase in the price of the investment.

The fund is expected to provide unitholders with attractive, quarterly, tax-advantaged distributions, initially targeted to be $0.70 per annum, representing an annual yield of 7% based on the original issue price of $10 per unit.

The initial public offering is scheduled to close on Nov. 20.

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