Och-Ziff sells $621.25 million; Onex places CLO; about $18 billion of deals in pipeline

By Cristal Cody

Tupelo, Miss., March 7 - Details emerged on Friday for two collateralized loan obligation deals brought over the week, including Och-Ziff Loan Management, LP's $621.25 million offering, according to informed sources.

Och-Ziff priced the $375 million AAA-rated tranche at Libor plus 155 basis points, 5 bps wider compared to recent deals, according to market sources.

Onex Credit Partners LLC raised about $420 million in a new CLO deal, an informed source said. The CLO sold the AAA tranche at Libor plus 100 bps.

Over the week, Intermediate Capital Group plc priced the €435.12 million St. Paul's CLO IV Ltd. deal and Ares Management LLC sold the $513.75 million Ares XXIX CLO Ltd./Ares XXIX CLO LLC transaction, according to market sources.

"It's been active," one source said.

Looking ahead, about $18 billion of deals are in the pipeline, according to a market source.

Och-Ziff sells CLO

Och-Ziff Loan Management priced $621.25 million of fixed- and floating-rate notes due April 17, 2026 in the OZLM VI CLO, Ltd./OZLM VI CLO, LLC transaction, according to an informed source.

The CLO priced $375 million of class A-1 senior secured floating-rate notes (Aaa) at Libor plus 155 bps; $49.5 million of class A-2a senior secured floating-rate notes (Aa1) at Libor plus 215 bps; $30 million of 4.47% class A-2b senior secured fixed-rate notes (Aa2); $36.75 million of class B senior secured deferrable floating-rate notes (A2) at Libor plus 290 bps; $37.5 million of class C senior secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $27 million of class D secured deferrable floating-rate notes (Ba3) at Libor plus 475 bps and $12 million of class E secured deferrable floating-rate notes (B2) at Libor plus 550 bps.

The deal included $53.5 million of subordinated notes in the equity tranche.

BofA Merrill Lynch was the placement agent.

Och-Ziff Loan Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans and eligible investments.

Och-Ziff Loan Management is a subsidiary of New York City-based alternative asset management Och-Ziff Capital Management Group LLC. The firm priced three CLO deals in 2013 that included the $653.25 million OZLM Funding III, Ltd., $600 million OZLM Funding IV, Ltd. and $501.25 million OZLM Funding V, Ltd. transactions, according to market sources.

Onex prices CLO

Onex Credit Partners sold $420,015,000 of notes due April 26, 2026 in the OCP CLO 2014-5 Ltd./OCP CLO 2014-5 Corp. offering, according to an informed source.

The CLO priced $242 million of class A-1A senior secured floating-rate notes (/AAA/) at Libor plus 100 bps; $60.5 million of A-2 senior secured floating-rate notes (/AA/) at Libor plus 172 bps; $25.25 million of class B deferrable floating-rate notes (/A/) at Libor plus 268 bps; $21.75 million of class C deferrable floating-rate notes (/BBB/) at Libor plus 325 bps; $18.75 million of class D deferrable floating-rate notes (/BB/) at Libor plus 450 bps; $8.5 million of class E deferrable floating-rate notes (/B/) at Libor plus 525 bps and $43,265,000 of preference shares in the equity tranche.

Citigroup Global Markets Inc. was the placement agent.

Onex Credit Partners will manage the CLO, which is collateralized primarily by a revolving pool of broadly syndicated senior secured corporate loans.

Onex Credit Partners, the credit investing arm of Toronto-based Onex Corp., was in the market in 2013 with the $511.1 million OCP CLO 2013-3 Ltd./OCP CLO 2013-3 Corp. transaction and the $514.35 million OCP CLO 2013-4 Ltd./OCP CLO 2013-4 Corp. deal.

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