By Cristal Cody
Tupelo, Miss., April 4 - Fortress Investment Group LLC raised $800 million in a new middle-market collateralized loan obligation deal, according to an informed source.
Fortress Credit Opportunities III CLO LP priced $100 million of class A-1R floating-rate revolving notes (/AAA/) at Libor plus 190 basis points, $228 million of class A-1T floating-rate notes (/AAA/) at Libor plus 190 bps and $40 million of class A-2T floating-rate revolving notes (/AAA/) at Libor plus 165 bps for the first eight payment periods and Libor plus 225 bps thereafter.
Lower in the capital structure, the CLO priced $20 million of class B-1 floating-rate notes (/AA/) at Libor plus 250 bps; $68 million of 4.95% class B-2 fixed-rate notes (/AA/); $64 million of class C deferrable floating-rate notes (/A/) at Libor plus 325 bps; $56 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 425 bps; $48 million of class E deferrable floating-rate notes (/BB/) at Libor plus 625 bps and $176 million of partnership interests in the equity tranche.
Natixis Securities America LLC arranged the transaction.
FCO III CLO GP LLC will manage the CLO and enter into a services agreement with Drawbridge Special Opportunities Advisors LLC, a subsidiary of Fortress Investment Group.
The deal is backed by senior secured middle-market corporate loans.
The CLO has a non-call period that ends April 7, 2016. The reinvestment period ends Oct. 28, 2017.
The notes are due April 28, 2026.
The offering is the first deal in the series since 2004, according to an informed source.
New York City-based Fortress Investment Group was in the market in March 2013 with the $412 million Fortress Credit BSL Ltd./Fortress Credit BSL LLC transaction.
| Issuer: | Fortress Credit Opportunities III CLO LP
|
| Amount: | $800 million
|
| Maturity: | April 28, 2026
|
| Securities: | Fixed- and floating-rate notes and partnership interests
|
| Structure: | Cash flow CLO
|
| Placement agent: | Natixis Securities America LLC
|
| Manager: | FCO III CLO GP LLC
|
| Call feature: | April 7, 2016
|
| Pricing date: | April 2
|
| Settlement date: | April 28
|
|
|
| Class A-1R notes
|
| Amount: | $100 million
|
| Securities: | Floating-rate revolving notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Standard & Poor's: AAA
|
|
|
| Class A-1T notes
|
| Amount: | $228 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Standard & Poor's: AAA
|
|
|
| Class A-2T notes
|
| Amount: | $40 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Standard & Poor's: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Rating: | Standard & Poor's: AA
|
|
|
| Class B-2 notes
|
| Amount: | $68 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.95%
|
| Rating: | Standard & Poor's: AA
|
|
|
| Class C notes
|
| Amount: | $64 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Rating: | Standard & Poor's: A
|
|
|
| Class D notes
|
| Amount: | $56 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Rating: | Standard & Poor's: BBB
|
|
|
| Class E notes
|
| Amount: | $48 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Rating: | Standard & Poor's: BB
|
|
|
| Equity tranche
|
| Amount: | $176 million
|
| Securities: | Partnership interests
|
| Ratings: | Non-rated
|
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