By James McCandless
San Antonio, Aug. 2 – Oaktree Capital Group, LLC priced $235 million of $25-par series B preferred units with a dividend of 6.55%, according to an FWP filing with the Securities and Exchange Commission.
There is a $35.25 million greenshoe.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets, LLC are the joint bookrunners.
The preferreds are redeemable after five years. Prior to that, they are redeemable within 60 days of a change of control event, a tax redemption event or a ratings agency event.
The dividend will increase by 5% per annum 31 days after a change of control event.
Oaktree plans to use the proceeds for general corporate purposes, including to fund investments.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “OAKPrB.”
The deal was announced on Thursday morning.
Oaktree is a Los Angeles-based investment management company.
| Issuer: | Oaktree Capital Group, LLC
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| Description: | Series B Preferred Units
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| Amount: | $235 million, or 9.4 million shares
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| Greenshoe: | $35.25 million, or 1.41 million shares
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| Maturity: | Perpetual
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets, LLC
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| Senior co-managers: | Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC
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| Co-managers: | BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, MUFG Securities Americas Inc. and U.S. Bancorp Investments, Inc.
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| Dividend: | 6.55%
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| Price: | Par of $25
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| Call: | On or after Sept. 15, 2023 at par; prior to that, within 60 days of a change of control event, a tax redemption event or a ratings agency event
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| Pricing date: | Aug. 2
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| Settlement date: | Aug. 9
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| Ratings: | S&P: BBB
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| Fitch: BBB+
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| Distribution: | SEC Registered
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| Listing: | NYSE: OAKPrB
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