By Cristal Cody
Tupelo, Miss., July 31 – Octagon Credit Investors, LLC priced $523.8 million of notes in a refinancing and reset of the vintage 2013 Octagon Investment Partners XV, Ltd./Octagon Investment Partners XV, LLC transaction, according to a market source and a notice of executed third supplemental indenture.
The CLO sold $5 million of class X-R senior secured floating-rate notes at Libor plus 80 basis points, $278 million of class A-1A-R senior secured floating-rate notes at Libor plus 121 bps, $18 million of 3.175% class A-1B-R senior secured fixed-rate notes, $35 million of class A-2-R senior secured floating-rate notes at Libor plus 135 bps and $47 million of class B-R senior secured floating-rate notes at Libor plus 175 bps.
The CLO priced $30 million of class C-R secured deferrable floating-rate notes at Libor plus 260 bps, $29 million of class D-R secured deferrable floating-rate notes at Libor plus 370 bps, $16.8 million of class E-R secured deferrable floating-rate notes at Libor plus 700 bps and $65 million of subordinated notes.
Citigroup Global Markets Inc. arranged the offering.
Octagon originally issued the CLO on Feb. 20, 2013.
The spread on the X-R notes was reduced from the original Libor plus 129 bps price. The class A-1A notes originally priced with a spread of Libor plus 200 bps, while the original A-1B-2 notes were sold with a 3.507% coupon. The spread on the class A-2 notes was originally Libor plus 285 bps, while the spread on the class B notes was Libor plus 355 bps.
The maturity on the refinanced notes was extended to July 19, 2030 from January 2025.
The refinanced CLO has an extended two-year non-call period and a five-year reinvestment period.
Proceeds were used to redeem the original notes.
The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Octagon Credit Investors has priced one new CLO and refinanced six vintage CLOs year to date.
The CLO manager priced three new CLOs and refinanced one CLO in 2016.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners XV, Ltd./Octagon Investment Partners XV, LLC
|
| Amount: | $523.8 million refinancing
|
| Maturity: | July 19, 2030
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | Two years
|
| Settlement date: | July 19
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X-R notes
|
| Amount: | $5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 80 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1A-R notes
|
| Amount: | $278 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 121 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1B-R notes
|
| Amount: | $18 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.175%
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $35 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B-R notes
|
| Amount: | $47 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $30 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $29 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R notes
|
| Amount: | $16.8 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $65 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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