S&P rates Och-Ziff notes BBB+

Standard & Poor’s said it assigned a BBB+ rating on Och-Ziff Capital Management Group LLC’s proposed five-year senior unsecured notes issuance.

The size of the senior unsecured notes offering has not been finalized and will be subject to market conditions, but the agency said it is assuming the amount will be no more than $500 million.

Och-Ziff also plans to put in place a five-year $150 million senior unsecured revolving credit facility, S&P said.

The proceeds will be used to repay the $381 million currently outstanding on its term loan and for general corporate purposes, the agency said.

The notes will be fully and unconditionally guaranteed on a joint and several basis by OZ Management LP, OZ Advisors LP and OZ Advisors II LP.

OZ Management will be the borrower on the new revolver and the guarantors will be OZ Advisor, OZ Advisors II and Och-Ziff Finance Co. LLC.

The BBB+ issuer credit rating and stable outlook on Och-Ziff are unchanged, S&P added.

The ratings reflect an expectation for sustained, low debt leverage and strong interest coverage, the agency said.

Its 20-year track record of producing strong investment returns with low volatility and minimal use of leverage also support the ratings, S&P said.

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