Deutsche Bank has priced the notes backing a $505 million collateralized loan obligation for Oak Hill Advisors. The spread on the approximately eight-year triple-A notes is LIBOR plus 50 basis points and is one of the tightest this year for a CLO, a source noted. The vehicle is called Oakhill Credit Partners III and brings Oak Hill’s assets under management to approximately $5 billion. Reportedly, the vehicle will contain up to 85% leveraged loans and 15% high yield bonds. Portfolio manager Scott Krase did not return calls.
Oak Hill is also currently raising money for Oak Hill Credit Fund. This will invest in secured loans, second-lien debt, convertible securities, trade claims, options, swaps and public and private non-investment grade bonds. Other individuals at Oak Hill include Robert Okun, managing director and head trader, and Glenn August, president. At the beginning of this year, Deutsche Bank also raised the debt backing a $500 million CLO called Oak Hill Credit Partners II (LMW, 2/23). The triple-A notes on this deal priced at LIBOR plus 55 basis points.