Morgan Stanley priced a $622 million CLO for Oak Hill Advisors, according to a person familiar with the transaction.
The deal, OHA Credit Partners VI, included a $399 million triple-A rated tranche that priced at Libor plus 132 basis points, just wide of the tightest pricings this year.
It is the seventh CLO for Oak Hill, which was formed in 1991 and has $13 billion under management. It is also the 23rd CLO to be issued in the U.S. market this year, bringing the total for the year to date to $10 billion, according to research published by Standard & Poor’s. S&P said there are another 10-15 deals in the pipeline.
Greensledge Capital Markets served as placement agent along with Morgan Stanley.
OHA Credit Partners has a four-year reinvestment period, according to a presale report issued by Moody’s Investors Service this month. That is longer than many of the deals that have hit the market recently.
At least 90% of the portfolio must be invested in senior secured corporate loans and up to 10% of the portfolio may consist of second lien loans, unsecured loans and high yield bonds, Moody’s said in the report. In addition, the CLO does not allow for the purchase of structured finance, synthetics or equities.
At closing, the portfolio is expected to be 70% invested and 100% invested within six months.