By Rebecca Melvin
New York, Sept. 26 – Fortress Investment Group LLC raised $600 million in a new middle-market collateralized loan obligation deal, according to an informed source.
Fortress Credit Opportunities V CLO Ltd./Fortress Credit Opportunities V CLO LLC priced $86 million of class A-1R floating-rate revolving notes (/AAA/) at Libor plus 190 basis points, $82 million of class A-1T floating-rate notes (/AAA/) at Libor plus 190 bps and $90 million of class A-1F fixed-rate revolving notes (/AAA/) to yield 3.85% and $18 million of class A-2 fixed-rate revolving notes (/AA/) at 4.40%..
The CLO also priced $66 million of class B floating-rate notes (/AA/) at Libor plus 265 bps lower in the capital structure; as well as $48 million of floating-rate deferrable notes (/A/) at Libor plus 355 bps; $42 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 450 bps; $18 million of class E deferrable floating-rate notes (/BBB/) at Libor plus 490 bps; $18 million of class F deferrable floating-rate notes (/BB/) at Libor plus 675 bps; and $132 million of subordinated notes in an equity tranche.
Natixis Securities America LLC arranged the transaction.
FCO V CLO CM 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 Oct. 15, 2016, and a reinvestment period that ends Oct. 15, 2018.
The notes mature Oct. 15, 2026.
New York City-based Fortress Investment Group was in the market in April 2014 with the $800 million Fortress Credit Opportunities III CLO LP transaction.
| Issuer: | Fortress Credit Opportunities V CLO Ltd./Fortress Credit Opportunities V CLO LLC
|
| Amount: | $600 million
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| Maturity: | Oct. 15, 2026
|
| Securities: | Fixed- and floating-rate notes and subordinated notes
|
| Structure: | Cash flow CLO
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| Placement agent: | Natixis Securities America LLC
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| Manager: | FCO V CLO CM LLC
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| Call feature: | Oct. 15, 2106
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| Settlement date: | Oct. 15, 2014
|
|
|
| Class A-1R notes
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| Amount: | $86 million
|
| Securities: | Floating-rate revolving notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Standard & Poor's: AAA
|
|
|
| Class A-1T notes
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| Amount: | $82 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 190 bps
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| Rating: | Standard & Poor's: AAA
|
|
|
| Class A-1F notes
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| Amount: | $90 million
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| Securities: | Fixed-rate notes
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| Coupon: | 3.85%
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| Rating: | Standard & Poor's: AAA
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|
|
| Class B notes
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| Amount: | $66 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 265 bps
|
| Rating: | Standard & Poor's: AA
|
|
|
| Class C notes
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| Amount: | $48 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 355 bps
|
| Rating: | Standard & Poor's: A
|
|
|
| Class D notes
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| Amount: | $42 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 450 bps
|
| Rating: | Standard & Poor's: BBB
|
|
|
| Class E notes
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| Amount: | $18 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 490 bps
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| Rating: | Standard & Poor's: BBB
|
|
|
| Class F notes
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| Amount: | $18 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 675 bps
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| Rating: | Standard & Poor's: BB
|
|
|
| Equity tranche
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| Amount: | $132 million
|
| Securities: | Subordinated notes
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| Ratings: | Non-rated
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