By Cristal Cody
Tupelo, Miss., Oct. 8 – Deutsche Investment Management Americas Inc. sold $451.04 million of collateralized loan obligation notes due 2027 in the Flagship CLO VIII Ltd./Flagship CLO VIII LLC transaction, according to a market source.
The CLO priced $275 million of class A floating-rate notes (Aaa/AAA/) at Libor plus 156 basis points; $54.5 million of class B floating-rate notes (/AA/) at Libor plus 249 bps; $30.13 million of class C deferrable floating-rate notes (/A/) at Libor plus 313 bps; $22.75 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 370 bps; $20.8 million of class E deferrable floating-rate notes (/BB/) at Libor plus 520 bps; $8 million of class F deferrable floating-rate notes (/B/) at Libor plus 585 bps and $39.86 million of subordinated notes.
Deutsche Bank Securities Inc. arranged the transaction.
The CLO has a non-callable period that ends in January 2017 and a reinvestment period that ends in January 2019.
The transaction is backed by a revolving pool of broadly syndicated senior secured loans.
Deutsche Investment, a subsidiary of Deutsche Bank AG, will manage the CLO.
The offering is the firm’s second CLO deal since 2007. Deutsche priced the $441.81 million Flagship VII Ltd./Flagship VII LLC transaction in December.
| Issuer: | Flagship CLO VIII Ltd./Flagship CLO VIII LLC
|
| Amount: | $451.04 million
|
| Maturity: | 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | Deutsche Investment Management Americas Inc.
|
| Call feature: | January 2017
|
| Pricing date: | Oct. 3
|
| Settlement date: | Nov. 19
|
|
|
| Class A notes
|
| Amount: | $275 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 156 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $54.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 249 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $30.13 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 313 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $22.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $20.8 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 520 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Class F notes
|
| Amount: | $8 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 585 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $39.86 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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