By Cristal Cody
Tupelo, Miss., Oct. 6 – Fortress Investment Group LLC priced a $425.4 million collateralized loan obligation deal, upsized from an initial $409 million offering, according to a market source.
Fortress Credit BSL III Ltd./Fortress Credit BSL III LLC sold $259.5 million of class A senior secured floating-rate notes (Aaa/AAA) at Libor plus 151 basis points; $32 million of class B-1 senior secured floating-rate notes (/AA) at Libor plus 235 bps; $15 million of 4.12% class B-2 senior secured fixed-rate notes (/AA); $36.5 million of class C deferrable mezzanine floating-rate notes (/A) at Libor plus 345 bps; $22.5 million of class D deferrable mezzanine floating-rate notes (/BBB) at Libor plus 420 bps; $16.2 million of class E deferrable mezzanine floating-rate notes (/BB) at Libor plus 650 bps and $43.7 million of subordinated notes.
Mitsubishi UFJ Securities (USA) Inc. arranged the transaction.
The CLO manager is FC BSL III CM LLC, which will enter into a services agreement with Drawbridge Special Opportunities Advisors LLC, a subsidiary of Fortress Credit affiliate FIG LLC.
The notes are due Oct. 28, 2026.
The CLO is non-callable until Oct. 18, 2017. The reinvestment period ends Oct. 18. 2019.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Fortress Investment has priced three CLO transactions and refinanced two vintage 2012 deals year to date.
The New York City-based investment firm brought two CLO offerings in 2014.
| Issuer: | Fortress Credit BSL III Ltd./Fortress Credit BSL III LLC
|
| Amount: | $425.4 million
|
| Maturity: | Oct. 28, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Mitsubishi UFJ Securities (USA) Inc.
|
| Manager: | FC BSL III CM LLC
|
| Call feature: | Oct. 18, 2017
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 22
|
|
|
| Class A notes
|
| Amount: | $259.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 151 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $32 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B-2 notes
|
| Amount: | $15 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.12%
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $36.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 345 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $22.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 420 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $16.2 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Equity
|
| Amount: | $43.7 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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