Oak Hill Advisors offers $609 million CLO; new Barings manager preps CLO deal

By Cristal Cody

Eureka Springs, Ark., Oct. 21 – Two new CLOs are expected to price in the U.S. primary market, according to sources on Friday.

Oak Hill Advisors LP is in the deal pipeline with a $609 million CLO offering.

Barings LLC, formerly known as Babson Capital Management LLC, is marketing a $614.3 million transaction.

Nearly $63 billion of CLOs have priced year to date, according to Prospect News data.

Oak Hill markets CLO

Oak Hill Advisors is marketing $609 million of notes due Jan. 20, 2028 in the firm’s first new CLO offering of the year, according to a market source.

The OHA Loan Funding 2016-1, Ltd. deal includes $370 million of class A senior secured floating-rate notes (Aaa/AA); $60 million of class B-1 senior secured floating-rate notes (AA); $24 million of class B-2 senior secured fixed-rate notes; $36 million of class C mezzanine secured deferrable floating-rate notes (A); $33 million of class D mezzanine secured deferrable floating-rate notes (BBB); $28 million of class E junior secured deferrable floating-rate notes (BB-) and $58 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

Oak Hill Advisors priced two CLOs and refinanced one vintage CLO in 2015.

The investment firm is based in New York City.

Barings to price CLO

Barings plans to price $614.3 million of notes due Jan. 15, 2028 in the Barings CLO Ltd. 2016-III transaction, a market source said.

The deal includes $372 million of class A-1 senior secured floating-rate notes (Aaa); $75 million of class A-2 senior secured floating-rate notes (Aa2); $50.8 million of class B senior secured deferrable floating-rate notes (A2); $30 million of class C secured deferrable floating-rate notes (Baa3); $24 million of class D secured deferrable mezzanine floating-rate notes (Ba3) and $62.5 million of subordinated notes.

Citigroup Global Markets Inc. is the underwriter.

The deal is backed primary by broadly syndicated first-lien senior secured corporate loans.

Charlotte, N.C.-based Barings is a subsidiary of Massachusetts Mutual Life Insurance Co.

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