Och-Ziff sells $510.5 million CLO; volume higher in February; Europe supply sees uptick

By Cristal Cody

Tupelo, Miss., Feb. 23 – In new U.S. CLO issuance, Och-Ziff Loan Management LP priced a $510.5 million deal, a market source said.

The CLO placed the AAA-rated tranche of notes at Libor plus 155 basis points.

BofA Merrill Lynch was the placement agent.

The CLO, backed primarily by first-lien senior secured loans, has a two-year non-call period and a four-year reinvestment period.

Och-Ziff, an affiliate of New York City-based alternative asset management firm Och-Ziff Capital Management Group LLC, brought four CLO transactions in 2014.

The month is projected to end with about $14 billion of total CLO issuance year to date, according to J.P. Morgan Securities LLC.

Several deals are in the pipeline with at least one expected to price over the week.

BlueMountain Capital Management LLC is in the lineup to bring $506.7 million of notes due 2027 in the BlueMountain CLO 2015-1 Ltd./BlueMountain CLO 2015-1 LLC transaction over the week, a source said. Citigroup Global Markets Inc. is the placement agent.

European primary activity also has picked up with four new deals priced in 2015, including Blackstone/GSO Debt Funds Management Europe Ltd.’s €411.1 million Dartry Park CLO Ltd. transaction placed in the previous week.

“Notably, European CLO supply is trending upwards relative to recent years,” JPMorgan analysts said in a market note.

© 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.