Och-Ziff prices first new CLO of year, sells AAAs at 126 bps; May primary action picks up

By Cristal Cody

Tupelo, Miss., May 10 – Och-Ziff Loan Management LP priced its first new CLO offering of the year following three refinanced transactions.

The CLO manager sold $410.25 million of notes in the offering.

New pricing action has picked up in May following the heavy refinancing activity in the first four months of the year.

More than $21 billion of new CLOs have priced year to date, while about $70 billion of U.S. CLOs have been refinanced in 2017, according to market sources.

Och-Ziff Loan Management sold $410.25 million of notes due May 16, 2030 in the CLO transaction, according to a market source on Wednesday.

OZLM XVI, Ltd./OZLM XVI, LLC priced $254 million of class A-1 senior secured floating-rate notes at Libor plus 126 basis points in the AAA-rated tranche.

J.P. Morgan Securities LLC arranged the deal.

Och-Ziff Loan Management affiliate OZ CLO Management LLC will manage the CLO. Och-Ziff Loan Management will be the sub-manager.

Proceeds will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.

The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.

Och-Ziff has priced one new CLO and refinanced three vintage CLOs year to date.

The CLO manager refinanced two vintage CLOs in 2016.

The firm is an affiliate of New York City-based alternative asset management Och-Ziff Capital Management Group LLC.

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