Oak Hill Advisors preps for second CLO offering of summer; European CLO pipeline active

By Cristal Cody

Tupelo, Miss., July 19 - CLO primary activity stayed quiet in the U.S. markets over the week, while two deals priced in Europe, according to informed sources.

Ares Management LLC priced the €310 million Ares European CLO VI Ltd. on Thursday, and Intermediate Capital Group plc said on Monday that it brought a €400 million CLO.

Additional details emerged for Credit Suisse Asset Management, LLC's €304.75 million Cadogan Square CLO V BV offering of notes due 2025, which is expected to be next in line to price, according to an informed source.

In the U.S. pipeline, Oak Hill Advisors, LP, which closed July 15 on the $511.3 million OHA Loan Funding 2013-1, Ltd. CLO offering, is set to bring a $200 million deal, according to a market source.

Oak Hill Advisors priced eight tranches in the OHA Loan Funding 2013-1 offering, including $307.5 million of class A-1 senior secured floating-rate notes (Aaa) at Libor plus 125 basis points.

Nearly $45 billion in 92 CLO deals have priced year to date, a market source said on Friday.

OHA on calendar

Oak Hill Advisors, LP plans to bring a $200 million CLO offering of notes due Aug. 23, 2024, according to a market source on Friday.

The capital structure for the OHA Loan Funding 2013-2, Ltd./OHA Loan Funding 2013-2, Inc. offering includes $116 million of class A senior secured floating-rate notes (Aaa); $25 million of class B senior secured floating-rate notes; $9 million of class C mezzanine secured deferrable floating-rate notes and $50 million of subordinated notes.

Greensledge Capital Market LLC is the underwriter.

Oak Hill Advisors will manage the cash flow CLO.

The issue has a non-call period that ends Aug. 23, 2015 and a reinvestment period that ends Aug. 23, 2017.

The notes are backed by a portfolio of broadly syndicated first-lien senior secured corporate loans.

The deal is expected to close on Aug. 14.

The New York-based investment firm manages eight other CLOs.

Cadogan Square CLO V eyed

Credit Suisse Asset Management is expected to price the €304.75 million Cadogan Square CLO V offering of notes due 2025, according to an informed source.

The deal is expected to include €1.5 million of class X senior secured floating-rate notes (Aaa); €142.5 million of class A1 senior secured floating-rate notes (Aaa); £25.5 million of class A2 senior secured floating-rate notes (Aaa); €10 million of class B1 senior secured floating-rate notes (Aa2); €30 million of class B2 senior secured fixed-rate notes (Aa2); €17.25 million of class C senior secured deferrable floating-rate notes (A2); €15.5 million of class D senior secured deferrable floating-rate notes (Baa2); €24.75 million of class E senior secured deferrable floating-rate notes (Ba2) and €37.75 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

Credit Suisse Asset Management, a subsidiary of Zurich-based Credit Suisse AG, will manage the CLO, which is backed by European corporate leveraged loans.

The portfolio is expected to be 75% ramped up as of the closing date and will include mostly corporate loans to obligors domiciled in Western Europe. The remainder of the portfolio will be acquired during the six-month ramp-up period.

CSAM sold its last European CLO, the €507 million Cadogan Square CLO IV BV, in 2007.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.