Onex prices €437.2 million CLO; OFS, American Money refinance; spreads forecast to firm

By Cristal Cody

Tupelo, Miss., Nov. 6 – European CLO pricing action is picking up in November.

Onex Credit Partners, LLC sold €437.2 million of notes in the firm’s second euro-denominated CLO offering of the year.

In the refinancing space, details emerged on two transactions.

OFS Capital Management LLC priced $414.6 million of notes in a refinancing of a 2014 CLO.

American Money Management Corp. reset $384 million of notes from a 2013 CLO.

Repriced and secondary spreads have tightened and are expected to continue firming, according to a BofA Merrill Lynch analysts report released on Monday.

The analysts said that “spread tightening in the secondary market has already led to recently reset deals trading at levels inside of what we are seeing in the primary market. We expect CLO spreads to follow loans to new post-crisis tights of sub-110 [basis points] at the AAA level.”

Onex brings euro CLO

Onex Credit Partners priced €437.2 million of notes due Jan. 15, 2032 in the new euro-denominated offering, according to a market source and a company news release on Monday.

OCP Euro CLO 2017-2 DAC placed €245.4 million of class A senior secured floating-rate notes in the AAA-rated tranche.

J.P. Morgan Securities plc was the placement agent.

Onex Credit Partners will manage the CLO, which is structured to comply with U.S. and European risk retention rules.

Onex has priced two euro-denominated CLOs year to date.

The private equity firm is based in Toronto.

OFS refinances $414.6 million

OFS Capital Management priced $414.6 million of notes due Oct. 18, 2026 in a refinancing of the OFSI Fund VII Ltd./OFSI Fund VII LLC transaction, according to a market source and a notice of proposed supplemental indenture No. 2 to noteholders on Friday.

OFSI Fund VII sold $238.8 million of class A-R senior secured floating-rate notes at Libor plus 90 bps.

Nomura Securities International, Inc. was the refinancing agent.

The original $414.6 million CLO was issued Sept. 28, 2014.

OFS has priced one new CLO and refinanced one vintage CLO year to date.

The CLO manager is a Chicago-based investment subsidiary of Orchard First Source Asset Management LLC.

American Money resets CLO

American Money Management sold $384 million of notes in a refinancing and reset of the AMMC CLO XII, Ltd./AMMC CLO XII Corp. deal, according to a market source and a notice of revised second supplemental indenture and amendment to subordinated note issuing and payment agency agreement on Friday.

AMMC CLO XII priced $252 million of class A-R floating-rate notes at Libor plus 120 bps at the top of the capital structure.

SG Americas Securities LLC arranged the deal.

The maturity on the refinanced notes was extended to Nov. 10, 2030 from the original May 10, 2025 maturity.

The CLO originally was issued April 10, 2013.

The CLO manager has priced one new CLO and refinanced two vintage CLOs year to date.

American Money Management priced two new CLOs and refinanced two vintage transactions in 2016.

The Cincinnati-based firm is a subsidiary of insurance holding company American Financial Group, Inc.

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