By Cristal Cody
Tupelo, Miss., July 17 – Fortress Investment Group LLC sold $379.3 million of notes in a refinancing and reset of a vintage 2015 middle-market CLO transaction, according to a market source and a notice of executed supplemental indenture on Monday.
Fortress Credit Opportunities VI CLO Ltd./Fortress Credit Opportunities VI CLO LLC priced $57.4 million of class A-1-R-R senior secured revolving floating-rate notes at Libor plus 136 basis points, plus a commitment fee on the aggregate undrawn amount, $87.5 million of class A-1-T-R senior secured floating-rate notes at Libor plus 136 bps, $30 million of class A-1-L senior secured floating-rate loans at Libor plus 136 bps and $190 million of class A-2-R senior secured floating-rate notes at Libor plus 160 bps.
The CLO sold $33.4 million of class B-T-R senior secured floating-rate notes at Libor plus 205 bps and $15 million of 4.94% class B-F-R senior secured fixed-rate notes.
Fortress also priced $33.3 million of class C-R deferrable mezzanine floating-rate notes at Libor plus 265 bps, $23.4 million of class D-R deferrable mezzanine floating-rate notes at Libor plus 367 bps, $9.4 million of class F-R deferrable mezzanine floating-rate notes at Libor plus 738 bps and $70.9 million of subordinated notes.
Natixis Securities America LLC was the refinancing placement agent.
The CLO manager is FCOO CLO Management LLC.
The maturity on the notes was extended to July 10, 2030 from the original March 31, 2027 maturity.
The reset CLO has a two-year non-call period and a four-year reinvestment period.
In the original $350 million deal that was issued March 31, 2015, the CLO priced $55.5 million of class A-1R revolving floating-rate notes at Libor plus 190 bps; $59 million of class A-1T floating-rate notes at Libor plus 190 bps; $50 million of 3.51% class A-1F fixed-rate notes; $44.7 million of class B floating-rate notes at Libor plus 270 bps; $26.2 million of class C deferrable floating-rate notes at Libor plus 365 bps; $20.9 million of class D deferrable floating-rate notes at Libor plus 500 bps; $5.4 million of class E deferrable floating-rate notes at Libor plus 525 bps; $14.8 million of class F floating-rate notes at Libor plus 675 bps and $73.5 million of subordinated notes.
Proceeds were used to redeem the original notes.
The deal is backed primarily by middle-market small and medium enterprise loans.
Fortress Investment is a New York City-based investment firm.
| Issuer: | Fortress Credit Opportunities VI CLO Ltd./Fortress Credit Opportunities VI CLO LLC
|
| Amount: | $379.3 million refinancing
|
| Maturity: | July 10, 2030
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Natixis Securities America LLC
|
| Manager: | FCOO CLO Management LLC
|
| Call feature: | July 10, 2020
|
| Settlement date: | July 16
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-R-R notes
|
| Amount: | $57.4 million
|
| Securities: | Senior secured revolving floating-rate notes
|
| Coupon: | Libor plus 136 bps, plus a commitment fee on the aggregate undrawn amount
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1-T-R notes
|
| Amount: | $87.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 136 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1-L loans
|
| Amount: | $30 million
|
| Securities: | Senior secured floating-rate loans
|
| Coupon: | Libor plus 136 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $19 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-T-R notes
|
| Amount: | $33.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-F-R notes
|
| Amount: | $15 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.94%
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $33 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Rating: | S&P: A-
|
|
|
| Class D-R notes
|
| Amount: | $23.4 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 367 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $9.4 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 738 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $70.9 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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