OCP Senior Credit Fund

 

Onex Credit Partners, LLC ("OCP") is the exclusive credit investing platform of Onex Corporation ("Onex"). OCP has over a 12 year track record of managing investment strategies focused on corporate debt. OCP currently manages over $3.3 billion.

The OCP Senior Credit Fund (the "Fund") is an investment fund governed by the laws of the Province of Ontario.

Investment Rationale

The Fund has been established to provide holders of units with a stable source of tax-advantaged income through exposure to the performance of an actively managed, diversified portfolio comprised primarily of first lien, floating rate, senior secured loans of non-investment grade North American issuers.

Investment Objectives

The Fund seeks to achieve the following objectives:

  • Provide holders of units with attractive, quarterly, tax-advantaged distributions, currently targeted to be $0.50 per annum;
  • Preserve capital; and
  • Generate enhanced returns through increasing cash flow to the portfolio as interest rates rise.

It is expected that quarterly distributions received by Unitholders will consist primarily of returns of capital for tax purposes.

Investment Highlights

OCP believes that Senior Loans represent an attractive opportunity for investors:

  • Senior loans represent a unique and attractive asset class not easily accessible to Canadian investors
  • Senior Loans have generated attractive risk-adjusted returns
  • LIBOR, Senior Loans' most common reference rate, is near all-time lows
  • Senior Loans have protected capital in rising rate environments more effectively than fixed rate bonds