Chicago, Aug. 26 – Octagon Credit Investors, LLC priced $506.05 million of notes due October 2032 in a new collateralized loan obligation transaction, according to a market source.
Octagon Investment Partners 43, Ltd./Octagon Investment Partners 43, LLC sold $310 million of class A-1 floating-rate notes at Libor plus 130 basis points, $15 million of class A-2 floating-rate notes at Libor plus 165 bps, $55 million of class B floating-rate notes at Libor plus 175 bps, $27.25 million of class C floating-rate notes at Libor plus 240 bps; $30.75 million of class D floating-rate notes at Libor plus 390 bps; $22 million of class E floating-rate notes at Libor plus 660 bps and $46.05 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
Octagon Credit Investors will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The transaction is backed primarily by first-lien senior secured corporate loans.
The New York-based non-high-grade corporate credit investment adviser is majority owned by Conning & Co.
| Issuer: | Octagon Investment Partners 43, Ltd./Octagon Investment Partners 43, LLC
|
| Amount: | $506.05 million
|
| Maturity: | October 2032
|
| Securities | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | Two years
|
| Pricing date: | Aug. 16
|
| Settlement date: | September 2019
|
|
|
| Class A-1 notes
|
| Amount: | $310 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $15 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Ratings: | Moody’s: None expected
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $55 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
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| Amount: | $27.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $30.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E notes
|
| Amount: | $22 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Subordinated notes
|
| Amount: | $46.05 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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