By Cristal Cody
Tupelo, Miss., July 10 – Cutwater Investor Services Corp. sold $415.4 million of notes due July 15, 2026 in a debut collateralized loan obligation offering, according to a market source.
Cutwater 2014-I, Ltd./Cutwater 2014-I, LLC priced $216.6 million of class A-1a senior secured floating-rate notes (Aaa//AAA) at Libor plus 152 basis points; $45 million of class A-1b senior secured floating-rate notes (Aaa//) at Libor plus 136 bps and $38.2 million of class A-2 senior secured floating-rate notes (Aa2//) at Libor plus 215 bps.
The CLO sold $25 million of class B senior secured deferrable floating-rate notes (A2//) at Libor plus 285 bps; $22.9 million of class C senior secured deferrable floating-rate notes (Baa3//) at Libor plus 370 bps; $21.8 million of class D secured deferrable floating-rate notes (Ba3//) at Libor plus 525 bps; $7.3 million of class E secured deferrable floating-rate notes (B2//) at Libor plus 620 bps and $38.6 million of subordinated notes.
Natixis Securities Americas LLC was the placement agent.
Cutwater Investor Services will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The offering is collateralized primarily by first-lien senior secured loans and eligible investments.
Proceeds from the deal will be used to purchase a portfolio of about $400 million of leveraged loans.
Cutwater Investor Services is an investment management firm based in New York City.
| Issuer: | Cutwater 2014-I, Ltd./Cutwater 2014-I, LLC
|
| Amount: | $415.4 million
|
| Maturity: | July 15, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Natixis Securities Americas LLC
|
| Manager: | Cutwater Investor Services Corp.
|
| Call feature: | 2016
|
| Pricing date: | July 8
|
| Settlement date: | Aug. 15
|
|
|
| Class A-1a notes
|
| Amount: | $216.6 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 152 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1b notes
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| Amount: | $45 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 136 bps
|
| Ratings: | Moody’s: Aaa
|
|
|
| Class A-2 notes
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| Amount: | $38.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class B notes
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| Amount: | $25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 285 bps
|
| Ratings: | Moody’s: A2
|
|
|
| Class C notes
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| Amount: | $22.9 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Ratings: | Moody’s: Baa3
|
|
|
| Class D notes
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| Amount: | $21.8 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 525 bps
|
| Ratings: | Moody’s: Ba3
|
|
|
| Class E notes
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| Amount: | $7.3 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 620 bps
|
| Ratings: | Moody’s: B2
|
|
|
| Equity tranche
|
| Amount: | $38.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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