Carlyle taps middle market; Onex, MJX sell $1.4 billion of notes; Z Capital brings CLO

By Cristal Cody

Tupelo, Miss., June 9 – CLO managers Onex Credit Partners, LLC, MJX Asset Management LLC, Z Capital Credit Partners LLC and Carlyle Investment Management LLC were in the market with new offerings, sources said.

Onex Credit Partners priced a $757.05 million CLO deal.

MJX Asset Management brought $718.75 million of notes in a CLO offering.

Z Capital Credit Partners priced $400.25 million of notes in the firm’s first CLO transaction.

In the middle market space, Carlyle Investment Management brought a $398.9 million deal.

“Thus far in the year, 70 managers have issued CLOs,” J.P. Morgan Securities LLC analysts said in a note. “For context, 106 managers issued in 2014 and 95 in 2013. Also, four managers issued their very first CLO this year.”

The slowdown in primary volume continues to be attributed to a “slack loan supply and higher loan pricing,” according to the note. “Institutional loan supply of $68.4 billion in May 2015 was the most since $71.1 billion in November 2013.”

Onex prices $757.05 million

Onex Credit Partners priced $757.05 million of notes due June 15, 2027 in the OCP CLO 2015-9 Ltd./OCP CLO 2015-9 Corp. offering, according to a market source.

The CLO priced $470 million of class A-1 floating-rate notes at Libor plus 150 basis points in the senior tranche.

Citigroup Global Markets Inc. was the placement agent.

Onex will manage the CLO.

The CLO is non-callable until July 15, 2017. The reinvestment period ends June 15, 2019.

The notes are backed primarily by broadly syndicated senior secured corporate loans.

The CLO is structured to comply with European and U.S. risk retention rules, parent company Onex Corp. said in a news release.

Onex said it plans to purchase and hold a majority of the equity for the life of the transaction.

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.

The Toronto-based private equity firm placed three CLO transactions in 2014.

MJX prices $718.75 million

MJX Asset Management priced $718.75 million of notes due July 15, 2027 in the Venture XXI CLO, Ltd./Venture XXI CLO Corp. transaction, according to a market source.

The CLO priced $436.25 million of class A AAA-rated senior secured floating-rate notes at Libor plus 149 bps.

Credit Suisse Securities (USA) LLC was the placement agent.

MJX Asset Management is the CLO manager.

The CLO has a two-year non-call period and a four-year reinvestment period.

The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans and eligible investments.

MJX Asset Management has priced two CLOs and refinanced a vintage 2012 CLO year to date.

The New York City-based asset management company brought four CLO transactions in 2014.

Z Capital prices debut CLO

Z Capital Credit Partners sold $400.25 million of notes due July 15, 2027 in the debut CLO deal, according to a market source.

Z Capital Credit Partners CLO 2015-1 Ltd./Z Capital Credit Partners CLO 2015-1 LLC priced $6 million of class A-X amortizing senior secured floating-rate notes at Libor plus 130 bps and $243 million of class A-1 senior secured floating-rate notes at Libor plus 133 bps at the top of the capital stack.

Jefferies LLC was the arranger.

The CLO manager is Z Capital CLO Management LLC.

The CLO is non-callable until Jan. 15, 2018. The reinvestment period ends Jan. 15, 2020.

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

Z Capital is a Lake Forest, Ill.-based private equity firm.

Carlyle prices $398.9 million

Carlyle Investment Management sold $398.9 million of notes in a middle-market CLO offering, a source said.

Carlyle GMS Finance MM CLO 2015-1 LLC priced $160 million of class A-1A floating-rate notes at Libor plus 185 bps at the top of the capital structure.

Citigroup was the placement agent.

Carlyle Investment Management will manage the CLO.

Carlyle has priced two broadly syndicated CLOs year to date.

The asset management firm is an affiliate of the Washington, D.C.-based Carlyle Group.

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