OCP Credit Strategy Fund

OCP Credit Strategy Fund

November 20, 2009 08:46 ET

Onex Credit Partners Closes Initial Public Offering for the OCP Credit Strategy Fund at $200 Million

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Onex Credit Partners, LLC is pleased to announce that OCP Credit Strategy Fund (the "Fund") has completed an initial public offering of 20,000,000 units at $10 per unit, for gross proceeds of $200 million. The units are listed on the Toronto Stock Exchange under the symbol OCS.UN.

The Fund will seek to achieve the following objectives: (i) to maximize total returns for holders of units ("Unitholders"); (ii) to provide Unitholders with attractive, quarterly, tax-advantaged distributions, initially targeted to be $0.70 per annum, representing an annual yield of 7% based on the original issue price of $10.00 per unit; and (iii) to preserve capital. It is expected that quarterly distributions received by Unitholders will consist primarily of returns of capital for tax purposes.

The Fund will be managed by Onex Credit Partners, LLC ("OCP"), which is the exclusive credit investing arm of Onex Corporation (TSX:OCX). Onex Corporation is a leading Canadian investment firm with a long established track record and a disciplined, value-oriented approach to investing.

OCP believes that the dislocation in credit markets over the last two years has created an attractive environment for senior credit investors. Furthermore, OCP believes that investment opportunities in the North American senior debt market will continue to be favourable for investors for several years. OCP will seek to generate attractive risk adjusted returns for the Fund through exposure to an actively managed, unlevered diversified portfolio (the "Portfolio") comprised primarily of senior debt obligations of non-investment grade North American issuers. In order to manage risk and volatility, the strategy is based on a diversified portfolio and employs no financial leverage.

OCP will generally select investments for the Portfolio that meet the following criteria: (i) high levels of asset and/or cash flow coverage; (ii) attractive total return potential through a combination of current income and capital appreciation; and (iii) an anticipated company-specific event that OCP believes will trigger an increase in the price of the investment.

Since its inception in 2001, OCP's Debt Opportunity Strategy, which employs the same strategy as the Portfolio will, has outperformed all relevant benchmarks, including the S&P 500 Total Return Index, which it has outperformed by over 8.5% per annum, with generally less volatility and no financial leverage. Onex and Onex management currently have approximately US$65 million invested in the Debt Opportunity Strategy.

OCP has a long track record of opportunistically investing in senior, non-investment grade debt. Operating from offices in Englewood Cliffs, New Jersey, OCP's 11-person team is led by Michael J. Gelblat and Stuart R. Kovensky, each of whom have more than twenty years' experience in the senior credit markets.

The Fund has granted the agents for the offering an over-allotment option to acquire additional units exercisable at any time during the next thirty days.

The syndicate of agents for the offering was co-led by RBC Capital Markets and CIBC World Markets Inc., and included BMO Capital Markets, Scotia Capital Inc., Dundee Securities Corporation, GMP Securities L.P., Canaccord Adams, HSBC Securities (Canada) Inc., Blackmont Capital Inc., Desjardins Securities Inc., Manulife Securities Incorporated, Raymond James Ltd., Research Capital Corporation and Wellington West Capital Markets Inc.

All amounts in Canadian dollars unless otherwise stated. Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect Onex Credit Partners, LLC's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Onex Credit Partners, LLC believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Onex Credit Partners, LLC undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

All capital terms used but not otherwise defined have the meanings assigned to such terms in the prospectus.

Contact Information

  • OCP Credit Strategy Fund
    Toronto: 647.260.4055; Toll Free: 1.877.260.4055
    www.ocpcreditstrategy.ca
    or
    Onex Credit Partners
    Stuart Kovensky
    Co-Chief Investment Officer
    201.541.2121
    or
    Onex Corporation
    Andrew Sheiner
    Managing Director
    416.362.7711