By Cristal Cody
Tupelo, Miss., Aug. 9 – DoubleLine Capital LP priced $406.25 million of notes due July 20, 2032 in the manager’s first collateralized loan obligation transaction of 2019, according to a market source.
Parallel 2019-1 Ltd./Parallel 2019-1 LLC sold $3 million of class X senior secured floating-rate notes (Aaa/AAA) at Libor plus 65 basis points, $244 million of class A-1 senior secured floating-rate notes (Aaa/AAA) at Libor plus 136 bps and $16 million of class A-2 senior secured floating-rate notes (Aaa/non-rated/) at Libor plus 175 bps.
The CLO sold $10 million of class B-1 senior secured floating-rate notes (AA) at Libor plus 200 bps and $32 million of 4% class B-2 senior secured fixed-rate notes (AA).
Parallel 2019-1 priced $26 million of class C mezzanine secured deferrable floating-rate notes (A) at Libor plus 305 bps, $20 million of class D mezzanine secured deferrable floating-rate notes (BBB-) at Libor plus 420 bps, $17 million of class E junior secured deferrable floating-rate notes (BB-) at Libor plus 672 bps and $38.25 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The CLO is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.
DoubleLine Capital priced two new issue CLOs in 2018. The CLO manager brought its first CLO deal to the primary market in 2015 and its second CLO transaction in 2017.
The investment management firm is based in Los Angeles.
| Issuer: | Parallel 2019-1 Ltd./Parallel 2019-1 LLC
|
| Amount: | $406.25 million
|
| Maturity: | July 20, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | DoubleLine Capital LP
|
| Call feature: | Two years
|
| Pricing date: | July 24
|
| Settlement date: | Aug. 29
|
|
|
| Class X notes
|
| Amount: | $3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $244 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 136 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
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| Amount: | $16 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 175 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: Non-rated
|
|
|
| Class B-1 notes
|
| Amount: | $10 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2 notes
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| Amount: | $32 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4%
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $26 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 305 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $20 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 420 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $17 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 672 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $38.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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