By Cristal Cody
Eureka Springs, Ark., Sept. 15 – Garrison Capital Inc., an affiliate of Garrison Investment Group LP, announced on Thursday that it sold a $300 million collateralized loan obligation offering.
Garrison Funding 2016-2 Ltd. priced $25 million of class A-1R revolver notes at par with a coupon of Libor plus 220 basis points and $88.15 million of class A-1T term notes at par with a coupon of Libor plus 220 bps.
The CLO sold $25 million of 3.41% class A-1F term notes at par and $20.7 million of class A-2 term notes at 99.73 with a coupon of Libor plus 315 bps.
Garrison Funding 2016-2 also priced $21.45 million of class B term notes at 98.9 with a coupon of Libor plus 400 bps and $11.7 million of class C term notes at 98.66 with a coupon of Libor plus 600 bps.
The company said it will indirectly retain the $108 million equity tranche of subordinated notes.
Natixis Securities America LLC was the placement agent.
The notes are due in September 2027, and the reinvestment period ends in September 2020.
Garrison Capital said it will use the proceeds to refinance its existing CLO and will result in a reduction in the company’s regulatory leverage ratio while modestly increasing the weighted average cost of funds.
Garrison Investment Group priced the $410.09 million Garrison Funding 2016-1 Ltd./Garrison Funding 2016-1 LLC transaction on Sept. 8.
The firm was last in the CLO primary market in 2015 with one transaction.
Garrison Capital is a New York-based business development company that mostly invests in loans to U.S. middle-market companies.
| Issuer: | Garrison Funding 2016-2 Ltd.
|
| Amount: | $300 million
|
| Maturity: | September 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Natixis Securities America LLC
|
| Manager: | Garrison Investment Group, LP
|
| Announcement date: | Sept. 15
|
| Settlement date: | Sept. 29
|
|
|
| Class A-1R notes
|
| Amount: | $25 million
|
| Securities: | Revolver
|
| Coupon: | Libor plus 220 bps
|
| Price: | Par
|
| Rating: | S&P: AAA expected
|
|
|
| Class A-1T notes
|
| Amount: | $88.15 million
|
| Securities: | Term notes
|
| Coupon: | Libor plus 220 bps
|
| Price: | Par
|
| Rating: | S&P: AAA expected
|
|
|
| Class A-1F notes
|
| Amount: | $25 million
|
| Securities: | Term notes
|
| Coupon: | 3.41%
|
| Rating: | S&P: AAA expected
|
|
|
| Class A-2 notes
|
| Amount: | $20.7 million
|
| Securities: | Term notes
|
| Coupon: | Libor plus 315 bps
|
| Price: | 99.73
|
| Rating: | S&P: AA expected
|
|
|
| Class B notes
|
| Amount: | $21.45 million
|
| Securities: | Term notes
|
| Coupon: | Libor plus 400 bps
|
| Price: | 98.9
|
| Rating: | S&P: A expected
|
|
|
| Class C notes
|
| Amount: | $11.7 million
|
| Securities: | Term notes
|
| Coupon: | Libor plus 600 bps
|
| Price: | 98.66
|
| Rating: | S&P: BBB expected
|
|
|
| Equity
|
| Amount: | $108 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
