By Cristal Cody
Tupelo, Miss., Aug. 20 – Arrowpoint Asset Management LLC raised $415 million in a collateralized loan obligation deal, according to a market source.
The Arrowpoint CLO 2014-3 Ltd./Arrowpoint CLO 2014-3 LLC vehicle priced $250 million of class A floating-rate notes (/AAA/) at Libor plus 155 basis points; $48 million of class B floating-rate notes (/AA/) at Libor plus 210 bps; $32.4 million of class C deferrable floating-rate notes (/A/) at Libor plus 300 bps; $22 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 510 bps; $17.2 million of class E deferrable floating-rate notes (/BB/) at Libor plus 735 bps and $7 million of class F deferrable floating-rate notes (/B/) at Libor plus 600 bps.
The transaction included $38.4 million of subordinated notes in the equity tranche.
Goldman Sachs & Co. was the placement agent.
Arrowpoint Asset Management will manage the CLO.
The CLO has a non-call period that ends Oct. 15, 2016. The reinvestment period ends Oct. 15, 2018.
The notes are due Oct. 15, 2026.
The offering is backed primarily by broadly syndicated senior secured corporate loans.
Arrowpoint Asset Management previously brought the $460.25 million Arrowpoint CLO 2014-2 Ltd./Arrowpoint CLO 2014-2 Corp. deal in February and the $150 million Peaks CLO 1 Ltd./Peaks CLO 1 LLC transaction in June.
The Denver-based firm is the investment adviser arm of Meridian Funds.
| Issuer: | Arrowpoint CLO 2014-3 Ltd./Arrowpoint CLO 2014-3 LLC
|
| Amount: | $415 million
|
| Maturity: | Oct. 15, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co.
|
| Manager: | Arrowpoint Asset Management LLC
|
| Call feature: | Oct. 15, 2016
|
| Pricing date: | Aug. 15
|
| Settlement date: | Sept. 16
|
|
|
| Class A notes
|
| Amount: | $250 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $32.4 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 510 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $17.2 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 735 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Class F notes
|
| Amount: | $7 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 600 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $38.4 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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