Oak Hill Advisors offers $609 million CLO; new Barings manager preps CLO deal

By Cristal Cody

Eureka Springs, Ark., Oct. 21 – Two new CLOs are expected to price in the U.S. primary market, according to sources on Friday.

Oak Hill Advisors LP is in the deal pipeline with a $609 million CLO offering.

Barings LLC, formerly known as Babson Capital Management LLC, is marketing a $614.3 million transaction.

Nearly $63 billion of CLOs have priced year to date, according to Prospect News data.

Oak Hill Advisors is marketing $609 million of notes due Jan. 20, 2028 in the firm’s first new CLO offering of the year, according to a market source.

The OHA Loan Funding 2016-1, Ltd. deal includes $370 million of class A senior secured floating-rate notes (Aaa/AA); $60 million of class B-1 senior secured floating-rate notes (AA); $24 million of class B-2 senior secured fixed-rate notes; $36 million of class C mezzanine secured deferrable floating-rate notes (A); $33 million of class D mezzanine secured deferrable floating-rate notes (BBB); $28 million of class E junior secured deferrable floating-rate notes (BB-) and $58 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

In its deal, Barings plans to price $614.3 million of notes due Jan. 15, 2028 in the Barings CLO Ltd. 2016-III transaction, a market source said.

Citigroup Global Markets Inc. is the underwriter.

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

Charlotte, N.C.-based Barings is a subsidiary of Massachusetts Mutual Life Insurance Co.

© 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.