Onex Credit Partners, LLC ("OCP") specializes in opportunistically investing in companies experiencing some form of financial or operational stress.
OCP will generally target investments that meet the following criteria:
- High levels of asset and/or cash flow coverage;
- Attractive total return potential through a combination of current income and/or capital appreciation; and
- An anticipated company-specific event that OCP believes will trigger an increase in the price of the investment.
The Portfolio will follow a long/short, event-driven strategy that focuses on actively traded senior debt investments in the non-investment grade debt markets and seeks to deliver attractive risk-adjusted returns while emphasizing the preservation of capital. Senior debt may include
- syndicated bank loans that typically pay a floating rate of interest;
- senior bonds; and
- other senior debt obligations.
The Portfolio will be diversified with its largest exposure expected to be to senior secured bank loans, then senior bonds and a limited exposure to other unsecured claims, junior debt investments as well as equity investments.
A key principle of the Debt Opportunity Strategy is to use short exposure both to manage risk in the Portfolio and to generate returns. OCP will typically hedge the Portfolio to protect against the risk of losses from currency fluctuations. It is intended that the majority (and not less than 90%) of Portfolio investments denominated in foreign currencies will be hedged to the Canadian dollar.
Consistent with the Debt Opportunity Strategy, the Portfolio will not use financial leverage.
