By Cristal Cody
Tupelo, Miss., Dec. 9 - New York Life Investment Management LLC sold and closed on a $409.75 million collateralized loan obligation offering of notes due Jan. 19, 2026, according to market sources.
Flatiron CLO 2013-1 Ltd./Flatiron CLO 2013-1 LLC priced $250.75 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Libor plus 140 basis points; $55.75 million of class A-2 senior secured floating-rate notes (Aa2//AA) at Libor plus 200 bps; $17 million of class B senior secured deferrable floating-rate notes (A2//) at Libor plus 275 bps; $25 million of class C senior secured deferrable floating-rate notes (Baa3//) at Libor plus 360 bps; $18 million of class D senior secured deferrable floating-rate notes (Ba3//) at Libor plus 490 bps; $12 million of class E senior secured deferrable floating-rate notes (B2//) at Libor plus 535 bps and $31.25 million of subordinated notes.
BofA Merrill Lynch arranged the transaction.
The CLO has a two-year non-call period and a four-year reinvestment period.
New York Life Investment Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Proceeds will be used to repay interim financing and to purchase assets to reach a target portfolio of about $400 million of leveraged loans.
New York Life Investments is a subsidiary of mutual life insurance company New York Life Insurance Co.
Issuer: | Flatiron CLO 2013-1 Ltd./Flatiron CLO 2013-1 LLC
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Amount: | $409.75 million
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Maturity: | Jan. 19, 2026
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Securities: | Floating-rated and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | BofA Merrill Lynch
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Manager: | New York Life Investment Management LLC
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Call feature: | Non-callable until 2016
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Settlement date: | Dec. 5
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Class A-1 notes
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Amount: | $250.75 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 140 bps
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Ratings: | Moody's: Aaa
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| Fitch: AAA
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Class A-2 notes
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Amount: | $55.75 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 200 bps
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Ratings: | Moody's: Aa2
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| Fitch: AA
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Class B notes
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Amount: | $17 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 275 bps
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Rating: | Moody's: A2
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Class C notes
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Amount: | $25 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 360 bps
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Rating: | Moody's: Baa3
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Class D notes
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Amount: | $18 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 490 bps
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Rating: | Moody's: Ba3
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Class E notes
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Amount: | $12 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 535 bps
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Rating: | Moody's: B2
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Equity tranche
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Amount: | $31.5 million
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Securities: | Subordinated notes
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Rating: | Non-rated
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