Och-Ziff Loan Management LP priced an $824.75 million collateralized loan obligation after upsizing the deal from $600 million.
OZLM VII, Ltd, which is being rated by both Moody’s Investors Service and Fitch Ratings, was 54% ramped at pricing, according to a person familiar with the situation.
Deutsche Bank Securities is the underwriter.
The deal has two senior, triple-A rated tranches: the $310 million A-1A priced at Libor plus 142 basis points and the $190 million A-1B Libor plus 149 basis points. Both tranches benefit from subordination of 37.5%.
There are also two Aa2’ rated tranches, one paying Libor plus 205 basis points and one paying a fixed rate of 4.249%, and two A2 rated tranches, one paying Libor plus 285 basis points and one paying a fixed rate of 5.35%.
A Baa3’ rated class pays Libor plus 360 basis points, a Ba2’ rated class pays Libor plus 500 basis points, and a B2’ rated class pays Libor plus 590 basis points.
Fitch only rated the senior tranches.
There is also a $68 million equity class of securities that is not rated by either agency.
The CLO has an unusual 4.25-year reinvestment period; most deals are actively managed for three or four years. It also has an unusually short non-call period, just one year.
OZLM is one of the largest CLO to print this year, though it is not as large as the $1.54 billion deal that Apollo Credit Management completed this month.
