Cathedral Lake III expects to redeem notes on July 17 via refinancing

By Angela McDaniels

Tacoma, Wash., June 26 – Cathedral Lake III Ltd. and Cathedral Lake III LLC gave notice of a proposed refinancing of their rated notes.

The proposed refinancing is being made at the direction of the holders of a majority of the subordinated notes.

Changes are needed to the indenture in order to complete the proposed refinancing. The proposed date of execution of the proposed supplemental indenture is July 17, which will also be the redemption date for the refinancing.

The issuers will seek the consent of the subordinated noteholders to the proposed supplement indenture.

As previously reported, the issuers priced $404.36 million of notes due Jan. 15, 2026 in the transaction on Oct. 23, 2015.

The CLO priced $257 million of class A-1 loans at Libor plus 137 bps, $2.5 million of class A-X floating-rate notes at Libor plus 130 basis points, $46 million of class B floating-rate notes at Libor plus 255 bps, $24 million of class C deferrable floating-rate notes at Libor plus 355 bps, $21 million of class D deferrable floating-rate notes at Libor plus 550 bps, $20 million of class E deferrable floating-rate notes at Libor plus 755 bps and $33.86 million of subordinated notes.

The refinancing is expected to include $244.15 million of class A-1-R loans, $12.85 million of class A-R notes, $46 million of class B-R notes, $24 million of class C-R notes, $21 million of class D-R notes, $20 million of class E-R notes and $33.86 million of subordinated notes.

Dallas-based Carlson Capital, LP is the CLO manager.

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