OZ Management amends, permitting term loan buyback at price of 95

By Sara Rosenberg

New York, Nov. 15 - OZ Management LP amended its credit facility on Tuesday, allowing for the repurchase of term loan debt at a discount of 95, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the existing term loan remains at Libor plus 75 basis points.

The buyback will be funded with proceeds from a $250 million class A shares offering.

In addition, the company has entered into a $391 million delayed-draw term loan due Nov. 23, 2016 that will be used for the buyback if proceeds from the shares offering are insufficient. Then, after a blackout period, remaining funds under the delayed-draw loan can be used to repay the existing term loan, for working capital and for other general corporate purposes.

The delayed-draw loan, led by Goldman Sachs Lending Partners LLC, is priced at Libor plus 150 bps with a 75 bps undrawn fee.

Financial covenants under the delayed-draw loan include an economic income leverage ratio and a total assets under management requirement.

OZ Management is a subsidiary of Och-Ziff Capital Management Group LLC, a New York-based institutional alternative asset manager.

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