By Cristal Cody
Tupelo, Miss., July 27 – Carlyle Investment Management LLC subsidiary Carlyle CLO Management LLC refinanced $396 million of notes due July 15, 2027 from the Carlyle Global Market Strategies CLO 2016-2 Ltd./Carlyle Global Market Strategies CLO 2016-2 LLC transaction, according to a market source and a notice of revised proposed supplemental indenture on Friday.
The CLO sold $310 million of class A-1R senior secured floating-rate notes at Libor plus 98 basis points, $70 million of class A-2R senior secured deferrable floating-rate notes at Libor plus 150 bps and $16 million of class D-2R mezzanine secured deferrable floating-rate notes at Libor plus 517 bps.
Citigroup Global Markets Inc. was the refinancing placement agent.
The reset CLO will have an extended one-year non-call period.
The original $499 million transaction was issued June 8, 2016. In that offering, the CLO priced $310 million of class A-1 senior secured floating-rate notes at Libor plus 156 bps, $55 million of class A-2a senior secured floating-rate notes at Libor plus 220 bps and $15 million of 3.625% class A-2b senior secured fixed-rate notes.
The CLO also priced $31 million of preplaced class B senior secured deferrable floating-rate notes; $28 million of preplaced class C mezzanine secured deferrable floating-rate notes; $5 million of preplaced class D-1 mezzanine secured deferrable floating-rate notes; $16 million of class D-2 mezzanine secured deferrable floating-rate notes at Libor plus 645 bps and $39 million of subordinated notes.
Proceeds will be used to redeem the original notes.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Carlyle priced two new U.S. CLOs and refinanced five vintage U.S. CLOs in 2017.
The asset management firm is an affiliate of Washington, D.C.-based Carlyle Group.
| Issuer: | Carlyle Global Market Strategies CLO 2016-2 Ltd./Carlyle Global Market Strategies CLO 2016-2 LLC
|
| Amount: | $396 million refinancing
|
| Maturity: | July 15, 2027
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Carlyle CLO Management LLC
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| Call feature: | Aug. 4, 2019
|
| Pricing date: | July 20
|
| Settlement date: | Aug. 3
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1R notes
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| Amount: | $310 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 98 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2R notes
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| Amount: | $70 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 150 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class D-2R notes
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| Amount: | $16 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 517 bps
|
| Rating: | Moody’s: Ba3
|
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