DoubleLine Opportunistic Credit Fund raises $326.5 million in IPO

By Jennifer Chiou

New York, Jan. 27 - DoubleLine Opportunistic Credit Fund announced that it completed its $326.5 million initial public offering of common shares with Wells Fargo Securities, LLC and UBS Securities LLC as the lead underwriters.

The 13.06 million shares were sold for $25 each and are now listed on the New York Stock Exchange under the symbol "DBL."

If underwriters fully exercise their 45-day over-allotment option, overall sales will total about $375.25 million.

The underwriting syndicate also includes Barclays Capital Inc.; J.J.B. Hilliard, W.L. Lyons, LLC; Janney Montgomery Scott LLC; Ladenburg Thalmann & Co. Inc.; Maxim Group LLC; Wedbush Securities Inc.; and Wunderlich Securities, Inc., according to an N-2 filing with the Securities and Exchange Commission.

As reported in December, DoubleLine is a newly organized closed-end management investment company based in Los Angeles. Its objective is to seek high total investment return by providing a high level of current income and the potential for capital appreciation.

The fund expects its portfolio will initially be 100% invested in mortgage-backed securities. The fund may invest in debt securities and income-producing investments of any kind including residential and commercial mortgage-backed securities, asset-backed securities, U.S. government securities, corporate debt, international sovereign debt and short-term investments.

Under normal circumstances, at least 80% of the fund's assets will be invested in debt securities, convertible securities, loans and other securities or instruments, at least 50% in mortgage-backed securities of all kinds and at least 25% in privately issued ("non-agency") mortgage- and asset-backed securities. The fund expects that at least half of its total assets will be invested in investment-grade securities.

The fund does not plan to employ leverage initially.

Distributions will be declared and paid monthly.

Fees include a 4.5% sales load and 0.2% of offering expenses. Annual expenses will total 2.74% including a 1.5% management fee, a 0.23% administration fee, 0.77% of interest expense on borrowed funds and 0.24% of other expenses.

Jeffrey Gundlach is the founder, chief executive officer and chief investment officer of Los Angeles-based DoubleLine Capital LP, the investment adviser.

Philip Barach is the co-founder and president. He will assist portfolio managers Joel Damiani, Joseph Galligan and Bonnie Baha in the implementation of the fund strategy.

© 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.