U.S. dollar CLO issuance grows; Onex prices $758 million of notes in OCP CLO 2015-9 deal

By Cristal Cody

Tupelo, Miss., June 4 – About $55 billion of U.S. dollar-denominated CLOs have priced year to date following a new transaction from Onex Corp., according to market sources and Prospect News data.

Onex announced on Thursday that credit investing arm Onex Credit Partners, LLC priced its ninth CLO deal, OCP CLO 2015-9 Ltd./OCP CLO 2015-9 Corp.

The deal was arranged by Citigroup Global Markets Inc. Final pricing details were not available by press time.

The CLO is structured to comply with European and U.S. risk retention rules, Onex said.

Onex plans to purchase and hold a majority of the equity for the life of the transaction. The notes are due June 15, 2027.

With the new deal and the unwinding of its first CLO that was called, Onex Credit Partners manages more than $6 billion, the company said.

The deal is the firm’s second CLO transaction brought in 2015. Onex Credit Partners priced the $764 million OCP CLO 2015-8 Ltd./OCP CLO 2015-8 Corp. offering on April 10.

Onex, a Toronto-based private equity firm, priced three CLO transactions in 2014.

In the secondary market, CLO AAA notes were flat at Libor plus 145 basis points, according to a market source.

AA-rated notes remain about 20 bps better on the month at Libor plus 190 bps.

© 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.