Oaktree markets $470 million CLO; Highbridge, Black Diamond to price in near term

By Cristal Cody

Eureka Springs, Ark., March 3 – CLO primary action remains mostly quiet this week but new deals are being marketed, according to sources on Thursday.

Oaktree Capital Management LP intends to price a $470 million CLO transaction.

CLO deals expected to price in the coming weeks include Highbridge Principal Strategies LLC’s $406.75 million offering and Black Diamond Capital Management, LLC’s $350 million deal, a source said.

CLO managers have priced more than $2.5 billion of CLOs year to date, according to Prospect News data.

Oaktree Capital Management plans to price $470 million of notes due Jan. 20, 2027 in the Oaktree EIF I series A Ltd./Oaktree EIF I series A LLC transaction, according to a market source.

The deal includes $289.8 million of class A floating-rate notes (/AAA); $31 million of class B-1 floating-rate notes (/AA); $24.6 million of class B-2 fixed-rate notes (/AA); $26.5 million of class C-1 floating-rate notes (/A); $10 million of class C-2 fixed-rate notes and $88.1 million of income notes.

Wells Fargo Securities LLC is the placement agent.

The CLO has a non-call period that ends on March 20, 2018 and a reinvestment period that ends on Oct. 20, 2018.

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

Oaktree Capital Management was in the primary market in 2015 with three CLO deals.

The Los Angeles-based asset management firm is a subsidiary of Oaktree Capital Group, LLC.

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