By Cristal Cody
Tupelo, Miss., July 1 – Fortress Investment Group LLC sold $451.75 million of notes due July 23, 2032 in its first new broadly syndicated collateralized loan obligation offering of the year, according to market sources.
Fortress Credit BSL VII Ltd./Fortress Credit BSL VII LLC priced $243 million of class A-1 floating-rate notes at Libor plus 145 basis points; $41 million of class A-2 floating-rate notes at Libor plus 200 bps; $44.5 million of class B floating-rate notes at Libor plus 215 bps; $27.25 million of class C deferrable floating-rate notes at Libor plus 290 bps; $30 million of class D deferrable floating-rate notes at Libor plus 403 bps; $16.5 million of class E deferrable floating-rate notes at Libor plus 694 bps and $49.5 million of subordinated notes.
MUFG was the placement agent.
FS BSL VII Management LLC will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Fortress Investment refinanced three vintage CLOs in 2018, including a reset of $379.3 million of notes from the vintage 2015 CLO transaction, Fortress Credit BSL VI Ltd./Fortress Credit BSL VI LLC, formerly known as Hildene CLO IV, Ltd./Hildene CLO IV LLC.
Fortress Investment is a New York City-based investment firm.
| Issuer: | Fortress Credit BSL VII Ltd./Fortress Credit BSL VII LLC
|
| Amount: | $451.75 million
|
| Maturity: | July 23, 2032
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | MUFG
|
| Manager: | FS BSL VII Management LLC
|
| Call feature: | Two years
|
| Pricing date: | June 24
|
| Settlement date: | July 10
|
|
|
| Class A-1 notes
|
| Amount: | $243 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $41 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | S&P: Non-rated
|
|
|
| Class B notes
|
| Amount: | $44.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $27.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 403 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $16.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 694 bps
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
|
|
| Equity
|
| Amount: | $49.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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