By Cristal Cody
Tupelo, Miss., May 7 - Anchorage Capital Group, LLC priced $621.5 million of notes due July 6, 2026 in a collateralized loan obligation deal, according to a market source.
The Anchorage Capital CLO 4, Ltd./Anchorage Capital CLO 4, LLC vehicle sold $264.5 million of class A-1A senior secured floating-rate notes (Aaa//AAA) at Libor plus 145 basis points; $100 million of class A-1B senior secured floating-rate notes (Aaa//AAA) at Libor plus 155 bps and $79.5 million of class A-2 senior secured floating-rate notes (Aa2) at Libor plus 216 bps.
Lower in the capital structure, the CLO priced $27.5 million of class B senior secured deferrable floating-rate notes (A2) at Libor plus 300 bps; $42 million of class C senior secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $37 million of class D secured deferrable floating-rate notes (Ba3) at Libor plus 475 bps and $15 million of class E secured deferrable floating-rate notes (B3) at Libor plus 550 bps.
The deal included $56 million of subordinated notes in the equity tranche.
BofA Merrill Lynch was the placement agent.
Anchorage Capital will manage the CLO, which is backed primarily by a portfolio of broadly syndicated senior secured corporate loans.
The CLO will have a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to repay interim financing that allowed the issuer to purchase collateral prior to the closing date and to purchase assets to reach a target portfolio of about $600 million of primarily leveraged loans.
Anchorage Capital was in the primary market in February with the $517.75 million Anchorage Capital CLO 3, Ltd./Anchorage Capital CLO 3, LLC deal.
The New York City-based global asset manager brought one CLO transaction in 2013.
| Issuer: | Anchorage Capital CLO 4, Ltd./Anchorage Capital CLO 4, LLC
|
| Amount: | $621.5 million
|
| Maturity: | July 6, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Anchorage Capital Group, LLC
|
| Call feature: | 2016
|
| Pricing date: | May 2
|
| Settlement date: | June 5
|
| Distribution: | Rule 144A
|
|
|
| Class A-1A notes
|
| Amount: | $264.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $100 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $79.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 216 bps
|
| Ratings: | Moody's: Aa2
|
|
|
| Class B notes
|
| Amount: | $27.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody's: A2
|
|
|
| Class C notes
|
| Amount: | $42 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Moody's: Baa3
|
|
|
| Class D notes
|
| Amount: | $37 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 475 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Class E notes
|
| Amount: | $15 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Rating: | Moody's: B3
|
|
|
| Equity tranche
|
| Amount: | $56 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
