By Cristal Cody
Tupelo, Miss., July 13 – Och-Ziff Loan Management LP priced a new $512 million collateralized loan obligation transaction, according to a market source.
OZLM XVII, Ltd./OZLM XVII, LLC sold $322.5 million of class A-1 senior secured floating-rate notes at Libor plus 125 basis points; $35 million of class A-2A senior secured floating-rate notes at Libor plus 190 bps; $20 million of 4% class A-2B senior secured fixed-rate notes; $27.5 million of class B mezzanine secured deferrable floating-rate notes at Libor plus 270 bps; $30 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 390 bps; $25 million of class D junior secured deferrable floating-rate notes at Libor plus 630 bps and $52 million of subordinated notes.
Morgan Stanley & Co. LLC arranged the deal.
Och-Ziff Loan Management will manage the CLO.
The notes are due July 22, 2030.
The CLO has a two-year non-call period and a five-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.
The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
Och-Ziff has priced two new CLOs and refinanced four vintage CLOs year to date.
The CLO manager refinanced two vintage CLOs in 2016.
The firm is an affiliate of New York City-based alternative asset management firm Och-Ziff Capital Management Group LLC.
| Issuer: | OZLM XVII, Ltd./OZLM XVII, LLC
|
| Amount: | $512 million
|
| Maturity: | July 22, 2030
|
| Securities: | Fixed- and floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Och-Ziff Loan Management LP
|
| Call feature: | Two years
|
| Pricing date: | June 30
|
| Settlement date: | July 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $322.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2A notes
|
| Amount: | $35 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class A-2B notes
|
| Amount: | $20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4%
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $27.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 270 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $30 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $25 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 630 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $52 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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