By Cristal Cody
Tupelo, Miss., Feb. 23 – Och-Ziff Loan Management LP priced a $510.5 million collateralized loan obligation offering of notes due Jan. 30, 2027, according to a market source.
OZLM XI, Ltd./OZLM XI, LLC sold $302 million of class A-1 floating-rate notes at Libor plus 155 basis points; $15 million of 3.28% class A-2 fixed-rate notes; $33 million of class A-2a floating-rate notes at Libor plus 225 bps; $30 million of 4.17% class A-2b fixed-rate notes; $23.5 million of class B floating-rate notes at Libor plus 300 bps; $16 million of class C-1 floating-rate notes at Libor plus 405 bps; $15.5 million of 3.75% class C-2 fixed-rate notes; $25 million of class D floating-rate notes at Libor plus 540 bps; $10 million of class E floating-rate notes at Libor plus 615 bps and $40.5 million of subordinated notes.
The deal was downsized from an initial estimated amount of $512 million.
BofA Merrill Lynch was the placement agent.
Och-Ziff Loan Management will manage the CLO.
The CLO, backed primarily by first-lien senior secured loans, has a two-year non-call period and a four-year reinvestment period.
Proceeds from the deal will be used to purchase collateral to reach a target portfolio of about $500 million of mainly senior secured leveraged loans.
Och-Ziff, an affiliate of New York City-based alternative asset management Och-Ziff Capital Management Group LLC, brought four CLO transactions in 2014.
| Issuer: | OZLM XI, Ltd./OZLM XI, LLC
|
| Amount: | $510.5 million
|
| Maturity: | Jan. 30, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Och-Ziff Loan Management LP
|
| Call feature: | Two years
|
| Pricing date: | Feb. 13
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $302 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $15 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.28%
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2a notes
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| Amount: | $33 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class A-2b notes
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| Amount: | $30 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.17%
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B notes
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| Amount: | $23.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class C-1 notes
|
| Amount: | $16 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 405 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class C-2 notes
|
| Amount:e | $15.5 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.75%
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class D notes
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| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 540 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Class E notes
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| Amount: | $10 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 615 bps
|
| Rating: | Moody’s: B2
|
|
|
| Equity tranche
|
| Amount: | $40.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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