By Cristal Cody
Tupelo, Miss., Aug. 15 – Oaktree Capital Management LP sold $748.6 million of notes due July 20, 2031 in a new collateralized loan obligation transaction that closed on Thursday, according to a market source.
Oaktree CLO 2019-3 Ltd./Oaktree CLO 2019-3 LLC priced $442.5 million of class A-1 senior secured floating-rate notes at Libor plus 128 basis points, $37.5 million of class A-2 senior secured floating-rate notes at Libor plus 170 bps and $86.25 million of class B senior secured floating-rate notes at Libor plus 200 bps.
The CLO also sold $40 million of class C-1 secured deferrable floating-rate notes at Libor plus 300 bps, $5 million of 4.94% class C-2 secured deferrable fixed-rate notes, $45 million of class D secured deferrable floating-rate notes at Libor plus 396 bps, $28.13 million of class E secured deferrable floating-rate notes at Libor plus 677 bps and $64.23 million of subordinated notes.
The class A-1 through class C-1 notes priced at par. The class C-2 notes priced at 99.994, while the class D notes priced at 98.99 and the class E notes priced at 95.997.
Wells Fargo Securities, 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 three 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 2019-3 Ltd./Oaktree CLO 2019-3 LLC
|
| Amount: | $748.6 million
|
| Maturity: | July 20, 2031
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | Oaktree Capital Management LP
|
| Call feature: | Two years
|
| Pricing date: | July 17
|
| Settlement date: | Aug. 15
|
|
|
| Class A-1 notes
|
| Amount: | $442.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 128 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $37.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| S&P: non-rated
|
|
|
| Class B notes
|
| Amount: | $86.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Price: | Par
|
| Rating: | S&P: AA
|
|
|
| Class C-1 notes
|
| Amount: | $40 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Price: | Par
|
| Rating: | S&P: A
|
|
|
| Class C-2 notes
|
| Amount: | $5 million
|
| Securities: | Secured deferrable fixed-rate notes
|
| Coupon: | 4.94%
|
| Price: | 99.994
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $45 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 396 bps
|
| Price: | 98.99
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $28.13 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 677 bps
|
| Price: | 95.997
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $64.23 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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