Oaktree Capital prices $748.6 million CLO; secondary high-grade CBO/CDO/CLOs active

By Cristal Cody

Tupelo, Miss., Aug. 15 – Oaktree Capital Management LP sold $748.6 million of notes in the manager’s third new CLO offering of the year.

The deal closed on Thursday.

CLO managers have priced about $65 billion of broadly syndicated CLOs year to date, according to market sources.

Looking at the securitized secondary market, $306.16 million of high-grade CBO/CDO/CLO issues were traded in the previous session, according to Trace data. Lower in the capital stack, another $148.64 million of non-investment-grade CBO/CDO/CLO securities traded.

The senior tranches had an average trading price of 98.60 on Wednesday, while non-high-grade CBO/CDO/CLO issues traded at an average price of 86.30.

Oaktree Capital Management sold $748.6 million of notes due July 20, 2031 in the CLO offering, according to a market source.

Oaktree CLO 2019-3 Ltd./Oaktree CLO 2019-3 LLC priced $442.5 million of class A-1 senior secured floating-rate notes at par to yield Libor plus 128 basis points at the top of the capital stack.

Wells Fargo Securities, LLC was the placement agent.

The issue is collateralized primarily by broadly syndicated senior secured corporate loans.

Oaktree has priced three new CLOs and refinanced one vintage CLO year to date.

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

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