Onex prices $1 billion CLO, 15th deal brought in May; Carlyle eyes $617.5 million offering

By Cristal Cody

Tupelo, Miss., May 22 - Onex Credit Partners LLC priced more than $1 billion of notes in a collateralized loan obligation deal on Thursday, bringing the 15th CLO transaction to price over the month, according to market sources.

More than $10 billion of CLO deals are in the pipeline, according to market sources.

Carlyle Investment Management LLC has a $617.5 million transaction in the works, according to an informed source.

Onex prices $1 billion

Onex Credit Partners sold $1,001,750,000 of notes due 2026 in the CLO offering, according to a market source.

OCP CLO 2014-6 Ltd./OCP CLO 2014-6 Corp. priced $365.5 million of class A-1A floating-rate notes (Aaa) at Libor plus 145 bps; $193 million of A-1B floating-rate notes (Aaa) at Libor plus 145 bps; $50 million of class A-1L floating-rate notes (Aaa) at Libor plus 135 bps; $63.75 million of class A-2A floating-rate notes at Libor plus 205 bps; $48.5 million of 4.16% class A-2B fixed-rate notes; $68.5 million of class B floating-rate notes at Libor plus 310 bps; $52.75 million of class C floating-rate notes at Libor plus 365 bps; $47 million of class D floating-rate notes at Libor plus 495 bps; $20.75 million of class E floating-rate notes at Libor plus 560 bps and $92 million of subordinated notes.

BofA Merrill Lynch arranged the deal.

Onex Credit Partners will manage the CLO, which is collateralized primarily by broadly syndicated first-lien senior secured corporate loans and eligible investments.

Onex Credit Partners, the credit investing arm of Toronto-based Onex Corp., was last in the CLO primary market on March 4 with the $420 million OCP CLO 2014-5 Ltd./OCP CLO 2014-5 Corp. deal.

Carlyle offers $617.5 million

Carlyle Investment Management plans to price $617.5 million of notes due 2025 in the Carlyle Global Market Strategies CLO 2014-2, Ltd./Carlyle Global Market Strategies CLO 2014-2 LLC transaction, according to an informed source.

The deal includes $377 million of class A senior secured floating-rate notes (Aaa/AAA/); $80 million of class B senior secured floating-rate notes (/AA/); $40 million of class C deferrable floating-rate notes (/A/); $31.5 million of class D deferrable floating-rate notes (/BBB/); $26.4 million of class E deferrable floating-rate notes (/BB/); $11.6 million of class F deferrable floating-rate notes (/B/) and $51 million of subordinated notes.

Mitsubishi UFJ Securities (USA) Inc. is the placement agent.

Carlyle Investment Management will manage the CLO, which is backed primarily by broadly syndicated senior secured corporate loans.

Carlyle Investment Management, part of the Washington, D.C.-based Carlyle Group, brought the $726.5 million Carlyle Global Market Strategies CLO 2014-1, Ltd. deal on Feb. 28.

The firm priced four U.S. CLO transactions in 2013.

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