By Cristal Cody
Tupelo, Miss., April 12 – Fortress Investment Group LLC affiliate FC BSL III CM LLC sold $561 million of notes in a refinancing and reset of a vintage 2015 broadly syndicated CLO transaction, according to a market source and a notice of revised proposed supplemental indenture on Wednesday.
Fortress Credit BSL III Ltd. priced $331 million of class A-R senior secured floating-rate notes at Libor plus basis 107 points, $58 million of class B-1-R senior secured floating-rate notes at Libor plus 173 basis points and $26 million of 4.47% class B-2-R senior secured fixed-rate notes.
The CLO sold $33 million of class C-R deferrable mezzanine floating-rate notes at Libor plus 230 bps; $29 million of class D-R deferrable mezzanine floating-rate notes at Libor plus 335 bps; $22.5 million of class E-R deferrable mezzanine floating-rate notes at Libor plus 619 bps and $61.5 million of subordinated notes.
MUFG was the refinancing placement agent.
The CLO manager is FC BSL III CM LLC.
The maturity on the notes was extended to April 18, 2031 from the initial Oct. 18, 2026 maturity.
The reset CLO has a two-year non-call period and a five-year reinvestment period.
In the original $425.4 million deal that was issued Oct. 22, 2015, the CLO priced $259.5 million of class A floating-rate notes at Libor plus 151 bps; $32 million of class B-1 floating-rate notes at Libor plus 235 bps; $15 million of 4.12% class B-2 fixed-rate notes; $36.5 million of class C floating-rate notes at Libor plus 345 bps; $22.5 million of class D floating-rate notes at Libor plus 420 bps; $16.2 million of class E floating-rate notes at Libor plus 650 bps and $43.7 million of subordinated notes.
Proceeds will be used to redeem the original notes.
Fortress Investment is a New York City-based investment firm.
| Issuer: | Fortress Credit BSL III Ltd.
|
| Amount: | $561 million refinancing
|
| Maturity: | April 18, 2031
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | MUFG
|
| Manager: | FC BSL III CM LLC
|
| Call feature: | Two years
|
| Settlement date: | April 18
|
|
|
| Class A-R notes
|
| Amount: | $331 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 107 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | $58 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 173 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2-R notes
|
| Amount: | $26 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.47%
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $33 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $29 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 335 bps
|
| Rating: | S&P: BBB
|
|
|
| Class E-R notes
|
| Amount: | $22.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 619 bps
|
| Rating: | S&P: BB
|
|
|
| Equity
|
| Amount: | $61.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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