MJX, Oak Hill price CLOs; Deerpath offers middle-market CLO; new issue volume weak

By Cristal Cody

Tupelo, Miss., March 3 – MJX Asset Management LLC priced $510.5 million of notes in a new broadly syndicated CLO offering.

Also, Oak Hill Advisors LP brought a $601.5 million broadly syndicated CLO to the primary market.

Meanwhile, Deerpath Capital Management, LP plans to price a $305 million middle-market CLO in its first deal since 2018.

The new issue market has seen substantially less supply than the refinancing space so far this year, sources report.

About $14 billion of new broadly syndicated CLOs have priced year to date, while nearly $24 billion of vintage CLOs have already been refinanced, reset or reissued.

New issue volume is down 22% year over year, according to a Wells Fargo Securities LLC research note on Tuesday.

In the same period a year ago, $18 billion of CLOs were priced.

The past month saw “10 fewer deals priced in February 2020 compared to Feb’19,” Wells Fargo analysts said in the note.

About $90 billion of new issue volume is forecast for the year, according to the report.

MJX prices Venture 39

MJX Asset Management priced $510.5 million of notes due April 15, 2033 in the Venture 39 CLO, Ltd./Venture 39 CLO, LLC deal, according to market sources on Tuesday.

The broadly syndicated CLO sold $310 million of class A-1 senior secured floating-rate notes at Libor plus 128 basis points at the top of the capital stack.

Nomura Securities International, Inc. was the placement agent.

The CLO will be managed by MJX Venture Management III LLC.

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

MJX is an asset management firm based in New York City.

Oak Hill sells CLO

Oak Hill Advisors sold $601.5 million of notes due April 18, 2033 in its broadly syndicated CLO deal, according to market sources.

OHA Credit Funding 5, Ltd./OHA Credit Funding 5 LLC priced $372 million of class A-1 floating-rate notes at Libor plus 117 bps at the top of the capital stack.

J.P. Morgan Securities LLC was the placement agent.

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

The investment firm is based in New York City.

Deerpath offers $305 million

Deerpath Capital Management plans to price $305 million of notes due April 15, 2032 in its middle-market CLO offering, according to an informed source.

The Deerpath Capital CLO 2020-1, Ltd./Deerpath Capital CLO 2020-1, LLC deal includes $156 million of class A-1 floating-rate notes (AAA); $18 million of class A-2 floating-rate notes (AAA); $25.5 million of class B floating-rate notes (AA); $31.5 million of class C deferrable floating-rate notes (A); $15 million of class D deferrable floating-rate notes (BBB-) and $59 million of subordinated notes.

GreensLedge Capital Markets, LLC and Raymond James & Associates Inc. are the placement agents.

The CLO is backed primarily by middle-market senior secured corporate loans.

The middle market lender is based in New York City.

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