Onex prices; Carlyle closes European CLO; Sound Harbor, Macquarie to launch CLO funds

By Cristal Cody

Tupelo, Miss., Oct. 3 - In new collateralized loan obligation issuance, Onex Corp. raised $514.35 million, according to informed market sources.

In other market activity, the Carlyle Group said on Thursday that it closed on its €335 million European CLO that priced in September, its second European CLO deal of the year.

"We are pleased to have established ourselves as a repeat issuer in the European CLO market and intend to be a continued presence as we are with our U.S. CLO business," Colin Atkins, head of Carlyle's European structured credit, said in the statement.

The firm said that it made its first CLO purchase in Europe in February 2012 when it acquired management contracts on €2.1 billion in European CLO assets from Highland Capital Management, LP.

Carlyle said its structured credit/CLO business had $17.4 billion in assets under management as of June 30, €4.8 billion of which are in Europe.

Speaking of the Carlyle Group, former partner Michael Zupon and former Blackstone Group partner Dean Criares, now partners at Sound Harbor Partners, are expected to launch a series of CLO funds in a joint arrangement between Sound Harbor Partners and Macquarie Credit Investment Management Inc., according to a release.

A Sound Harbor representative did not return messages for a timeframe for the launch of the CLO funds.

Onex prices $514.35 million

Onex sold $514.35 million of notes due Oct. 24, 2025 in the CLO, according to informed market sources.

The OCP CLO 2013-4 Ltd./OCP CLO 2013-4 Corp. priced $294.125 million of class A-1A senior secured floating-rate notes (/AAA/) at Libor plus 140 basis points; $14.5 million of 3.298% class A-1B senior secured fixed-rate notes (/AAA/); $56 million of class A-2 senior secured floating-rate notes (/AA/) at Libor plus 180 bps; $45.125 million of class B deferrable floating-rate notes (/A/) at Libor plus 275 bps; $31.125 million of class C deferrable floating-rate notes (/BBB-/) at Libor plus 375 bps; $20.625 million of class D deferrable floating-rate notes (/BB-/) at Libor plus 500 bps; $12.5 million of class E deferrable floating-rate notes (/B/) at Libor plus 560 bps and $39.85 million of subordinated notes.

J.P. Morgan Securities LLC was the placement agent.

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

The Toronto-based private equity firm was last in the market in March with the $511.1 million OCP CLO 2013-3 Ltd./OCP CLO 2013-3 Corp. transaction.

Carlyle closes

The Carlyle Global Market Strategies Euro CLO 2013-2, Ltd. will invest predominantly in new issue and secondary market European senior secured bank loans, according to a release on Thursday.

The Carlyle Group's €335 million European CLO priced on Sept. 17 via Citigroup Global Markets Inc.

The CLO priced with spreads that ranged from the €179 million offering of class A-1 floating-rate notes (/AAA/AAA) at Euribor plus 135 bps to the €7.8 million of class E floating-rate notes (/B/B-) priced at Euribor plus 550 bps, according to a market source.

The CLO was the global asset manager's second European CLO brought in 2013. Carlyle sold €350 million in June in the Carlyle GMS Euro CLO 2013-1, BV deal.

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