Onex Credit Partners has priced its 20th U.S. collateralized loan obligation for about $400 million. The CLO is expected to close in early December. This is Onex’s 24th CLO since launching its CLO platform in 2012.
Toronto, October 29, 2020 – Onex Corporation (“Onex”) (TSX: ONEX) announced that Onex Credit Partners, LLC (“Onex Credit”) priced its 20th U.S. collateralized loan obligation (“CLO”) for approximately $400 million. The transaction will be issued by a special purpose vehicle, backed by a diversified portfolio of broadly syndicated leveraged loans. The CLO is expected to close in early December.
U.S. CLO-20 will be managed by the Onex Credit team led by Paul Travers and Karen Lau. The transaction will be supported by a diverse, global group of more than 20 investors, including three new equity investors. This is the firm’s 24th CLO since launching its CLO platform in 2012. Onex previously announced its 19th U.S. CLO in June of this year.
“We are excited to reach the milestone of issuing our 20th U.S. CLO and we are very pleased with the execution we received including partnering with three new equity investors,” said Stuart Kovensky, co-CEO of Onex Credit.
“With lower CLO issuance and uncertainty around the macroeconomic outlook, CLOs need investors across the capital structure, and we believe our long-term dedication to this business and performance amidst stress drove investor demand for this CLO. Many firms have priced three-year reinvestment deals at similar liability execution to this five-year reinvestment deal, which we believe provides more optionality through expected volatility in the leveraged credit markets,” commented Karen Lau, Portfolio Manager at Onex Credit.
The securities offered in this CLO have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration under that Act. This release does not constitute an offer to sell or a solicitation of an offer to buy any such securities.