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. 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.