KBRA Assigns Preliminary Rating to OCP CLO 2019-16 Ltd.

Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one class of notes issued by OCP CLO 2019-16, Ltd. (OCP 2019-16).

OCP 2019-16 is a reinvesting cash flow collateralized loan obligation (CLO) managed by Onex Credit Partners (OCP). The preliminary rating reflects the initial credit enhancement levels, four levels of coverage tests including par value and interest coverage tests, excess spread, and a reinvestment diversion test.

The collateral in OCP 2019-16 will mainly consist of broadly syndicated leveraged loans issued by corporate obligors diversified across sectors. The obligors in the portfolio have a K-WARF of 2301, which represents a weighted average portfolio assessment of approximately B. The expected total portfolio par amount is $500 million with exposures to over 220 obligors. The portfolio is required to have at least 90% first lien senior secured notes and a maximum of 60% cov-lite loans as defined in the transaction documents.

OCP is the credit investing platform of Onex Corporation (Onex). OCP specializes in non-investment grade credit strategies with a 17-year track record managing par, stressed and distress senior loans and bonds. OCP has $10.2 billion in assets under management, including approximately $9.8 billion in par loan strategies and $8.2 billion across 15 CLOs. Onex has invested over $1.2 billion in OCP’s strategies. OCP is registered in the US as an investment advisor with the SEC and in Canada as a Portfolio Manager (Ontario), Investment Fund Manager (Ontario, Quebec and Newfoundland and Labrador).

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