Onex Credit Partners is launching its first CLO of 2016, and 11th overall, following up a 2015 when the private equity group issued three collateralized loan obligations of mostly similar sizes.
OCP CLO 2016-11 is a $456.5 million floating-rate notes issuance with a target par of $500 million in senior secured loans it plans to invest in. Onex has identified $388.12 million, or 77.62% of the portfolio ramp-up. The transaction involves 98 diversified obligors with the largest obligor holding 2.06% of the portfolio value.
Standard & Poor’s has issued preliminary ratings. The Class A-1 triple-A rated tranche is sized at $310 million, and is priced at Libor plus 160 bps with a subordination of 38.12%. The Class A-2 notes have a preliminary ‘AA’ structured-finance rating for the $68 million in that tranche, priced at Libor plus 240 bps. Onex is setting placing $44.45 million of subordinate notes into the transaction as the unrated equity slice.
The transaction was arranged by Citigroup. The deal is expected to close May 15.
Onex Credit Partners, the credit investing platform for private equity firm Onex Corp., has $5.39 billion of assets under management, including nine CLOs.
It’s last three CLOs were all issued in 2015, including the $470 million OCP CLO 2015-10 in September and the $470 million OCP CLO 2015-8 in March. In between those issuances, Onex ramped up a $697 million deal, which Onex was able to price at slightly narrower terms than this year’s initial issuance.