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 OCPs 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).

Class       Initial Amount       Interest Rate      

Par Subordination


O/C Trigger


O/C Cushion

Class A-1       $305,000,000       3mL + 1.40%       39.00%       130.84%       10.01%

KBRA analyzed the transaction using Global Structured Credit Rating Methodology published on August 7, 2018.

The preliminary rating is based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of a final rating that differs from the preliminary rating.

Class       Preliminary Rating       Initial Principal Amount
Class A-1 AAA (sf) $305,000,000

To access the ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)


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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

George Lyons, CFA,
(646) 731-3314
[email protected]

Malone, CFA, Director
(646) 731-2436
[email protected]

Zheng, Analyst
(646) 731-3379
[email protected]

Hudson, Managing Director
(646) 731-3320
[email protected]