Och-Ziff prices $510.2 million; KKR taps Europe; short-duration CLO secondary ‘strong’

By Cristal Cody

Tupelo, Miss., Nov. 21 – The U.S. and European CLO markets saw deal action on Friday from Och-Ziff Loan Management LP and KKR Credit Advisors (Ireland), while CLO notes were mostly stable in the secondary market, informed sources said.

“It hasn’t really changed a whole lot over the last couple of weeks,” a trader said. “Things have been bouncing around. New issues had sort of widened out at the bottom of the stack over the last couple of weeks but seem to have stabilized, but there may be a wider range between the first tier managers and the lower tier managers.”

New 2.0 CLO AAA-rated notes were seen from Libor plus 150 basis points to the Libor plus 165 bps area.

Short-duration CLOs have traded “relatively strong” in November, the trader said.

Och-Ziff raises $510.2 million

Och-Ziff Loan Management priced $510,208,000 of notes due Jan. 20, 2027 in the CLO offering on Friday, according to a market source.

OZLM IX, Ltd./OZLM IX, LLC sold $317 million of class A-1 floating-rate notes at Libor plus 158 bps at the top of the capital structure. At the bottom, the CLO priced $26.5 million of class D floating-rate notes at Libor plus 515 bps.

Credit Suisse Securities (USA) LLC arranged the offering.

Och-Ziff Loan Management has priced four CLOs year to date, including the $622.25 million OZLM VIII, Ltd./OZLM VIII, LLC deal on Aug. 7.

The firm is an affiliate of New York City-based alternative asset management Och-Ziff Capital Management Group LLC.

KKR prices €414 million

KKR Credit Advisors (Ireland) priced €414 million of notes due Jan. 21, 2028 in a private placement offering via BNP Paribas Securities Corp. on Friday, according to a market source.

The Avoca CLO XIII Ltd. CLO sold €5 million of 1.66% class A-1 senior secured fixed-rate notes and €235 million of class A-2 senior secured floating-rate notes at Euribor plus 125 bps at the top of the capital structure.

At the bottom of the stack, the CLO priced €13 million of class F deferrable floating-rate notes at Euribor plus 600 bps.

KKR Credit Advisors (Ireland), previously known as Avoca Capital Holdings, was last in the primary market on Aug. 4 with the €415 million Avoca CLO XII Ltd. offering and on May 9, 2014 with the €518.5 million Avoca CLO XI Ltd. transaction.

The credit investment management firm is based in Dublin.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.