By Cristal Cody
Tupelo, Miss., May 24 – Oaktree Capital Management LP sold $504.7 million of notes due April 15, 2031 in a collateralized loan obligation offering that closed on Thursday, according to a market source.
Oaktree CLO 2019-2 Ltd./Oaktree CLO 2019-2 LLC priced $297.5 million of class A-1A senior secured floating-rate notes (Aaa/AAA) at Libor plus 133 basis points, $27.5 million of 4.16% class A-1B senior secured fixed-rate notes (Aaa/non-rated/) and $55 million of class A-2 senior secured floating-rate notes (non-rated/AA/) at Libor plus 220 bps.
The CLO also sold $20 million of class B-1 senior secured deferrable floating-rate notes (A) at Libor plus 280 bps and $10 million of 5.3% class B-2 senior secured deferrable fixed-rate notes (A).
In addition, Oaktree CLO placed $28.75 million of class C senior secured deferrable floating-rate notes (BBB-) at Libor plus 396 bps, $18.75 million of class D senior secured deferrable floating-rate notes (BB-) at Libor plus 677 bps and $47.2 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The issue is collateralized primarily by broadly syndicated senior secured corporate loans.
Oaktree has priced two new CLOs and refinanced one vintage CLO year to date.
The CLO manager priced one new dollar-denominated CLO in 2018.
The Los Angeles-based asset management firm is a subsidiary of Oaktree Capital Group, LLC.
| Issuer: | Oaktree CLO 2019-2 Ltd./Oaktree CLO 2019-2 LLC
|
| Amount: | $504.7 million
|
| Maturity: | April 15, 2031
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Oaktree Capital Management LP
|
| Call feature: | Two years
|
| Pricing date: | April 12
|
| Settlement date: | May 23
|
|
|
| Class A-1A notes
|
| Amount: | $297.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 133 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $27.5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.16%
|
| Ratings: | Moody’s: Aaa
|
| S&P: Non-rated
|
|
|
| Class A-2 notes
|
| Amount: | $55 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-1 notes
|
| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Rating: | S&P: A
|
|
|
| Class B-2 notes
|
| Amount: | $10 million
|
| Securities: | Senior secured deferrable fixed-rate notes
|
| Coupon: | 5.3%
|
| Rating: | S&P: A
|
|
|
| Class C notes
|
| Amount: | $28.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 396 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $18.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 677 bps
|
| Rating: | S&P: BBB-
|
|
|
| Equity
|
| Amount: | $47.2 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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