By Cristal Cody
Tupelo, Miss., Dec. 18 – Cerberus Capital Management, LP priced a $352.75 million new middle-market CLO offering of notes due Jan. 15, 2032, according to details from an informed source.
Cerberus Loan Funding XXVII LP sold $15 million of class A-L senior secured floating-rate loans at Libor plus 180 basis points, $140 million of class A-1 senior secured floating-rate notes at Libor plus 180 bps, $27 million of 3.5% class A-2 senior secured fixed-rate notes and $28 million of class B senior secured floating-rate notes at Libor plus 270 bps.
The CLO also sold $30 million of class C-1 secured deferrable floating-rate notes at Libor plus 380 bps, $5 million of 5.39% class C-2 secured deferrable fixed-rate notes, $17.5 million of class D secured deferrable floating-rate notes at Libor plus 510 bps and $90.25 million of interest notes.
HSBC Securities (USA) Inc. and Natixis Securities Americas LLC were the placement agents.
Cerberus Business Finance, LLC will manage the CLO, which has a two-year non-call period and a four-year reinvestment period.
The offering is collateralized by small- and medium-sized enterprise loans and other assets.
The notes were admitted on Thursday for trading on the Euronext Dublin Global Exchange Market.
Cerberus has priced two middle-market CLO deals year to date.
The CLO manager brought four CLO transactions to the primary market in 2018.
Cerberus Capital is a private equity firm based in New York.
| Issuer: | Cerberus Loan Funding XXVII LP
|
| Amount: | $352.75 million
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Maturity: | Jan. 15, 2032
|
| Structure: | Middle-market CLO
|
| Placement agents: | HSBC Securities (USA) Inc. and Natixis Securities Americas LLC
|
| Manager: | Cerberus Business Finance, LLC
|
| Call feature: | Two years
|
| Pricing date: | Nov. 21
|
| Settlement date: | Dec. 12
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1 loans
|
| Amount: | $15 million
|
| Securities: | Senior secured floating-rate loans
|
| Coupon: | Libor plus 180 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1 notes
|
| Amount: | $140 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2 notes
|
| Amount: | $27 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.5%
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $28 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 270 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-1 notes
|
| Amount: | $30 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 380 bps
|
| Rating: | Moody’s: A3
|
|
|
| Class C-2 notes
|
| Amount: | $5 million
|
| Securities: | Secured deferrable fixed-rate notes
|
| Coupon: | 5.39%
|
| Rating: | Moody’s: A3
|
|
|
| Class D notes
|
| Amount: | $17.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 510 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Equity
|
| Amount: | $90.25 million
|
| Securities: | Interest notes
|
| Ratings: | Non-rated
|
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