Oak Hill Advisors is ramping up a new $400 million collateralized loan obligation called Oak Hill Credit Partners II. The vehicle is said to be close to pricing with Deutsche Bank as the underwriter. The vehicle will contain up to 70% loans with the balance in a bond bucket, according to a source familiar with the transaction. One issue the vehicle is now facing is ramping up while collateral is scarce, added a portfolio manager. "Allocations are tough right now, a little skinny," she said. The wide spreads over recent months have led to attractive opportunities for equity buyers, an analyst said, leading to a relatively strong pipeline for new CLOs. Two weeks ago, over $100 million of directories names traded, with several market players attributing the boost to large amounts of cash looking for a home (LMW, 1/13).
Oak Hill Ramps Up New CLO