By Cristal Cody
Tupelo, Miss., Jan. 2 - Guggenheim Partners Investment Management LLC sold a $650.27 million collateralized loan obligation offering of notes due Jan. 15, 2026, according to a market source.
The Hempstead CLO LP vehicle priced $383.5 million of class A-1 senior secured floating-rate notes (/AAA/AAA) at Libor plus 150 basis points; $47.32 million of class A-2 senior secured floating-rate notes (/AA/AA) at Libor plus 225 bps; $69.5 million of class B deferrable floating-rate notes (//A) at Libor plus 350 bps; $31.1 million of class C deferrable floating-rate notes (//BBB-) at Libor plus 450 bps; $26.7 million of class D deferrable floating-rate notes (//BB) at Libor plus 600 bps and $92.15 million of income notes.
Citigroup Global Markets Inc. arranged the transaction.
The CLO is non-callable until Jan. 15, 2016. The reinvestment period ends Jan. 15, 2018.
Proceeds from the offering will be used to purchase a portfolio of about $650 million of mostly senior secured leveraged loans.
The CLO is backed by broadly syndicated senior secured loans to corporate borrowers.
Guggenheim Partners Investment Management, part of New York- and Chicago-based financial services firm Guggenheim Partners, LLC, will manage the CLO.
| Issuer: | Hempstead CLO LP
|
| Amount: | $650.27 million
|
| Maturity: | Jan. 15, 2026
|
| Securities: | Floating-rate and income notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Guggenheim Partners Investment Management LLC
|
| Call feature: | Jan. 15, 2016
|
| Settlement date: | January
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $383.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Standard & Poor's: AAA
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $47.32 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Ratings: | Standard & Poor's: AA
|
| Fitch: AA
|
|
|
| Class B notes
|
| Amount: | $69.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Fitch: A
|
|
|
| Class C notes
|
| Amount: | $31.1 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 450 bps
|
| Rating: | Fitch: BBB-
|
|
|
| Class D notes
|
| Amount: | $26.7 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 600 bps
|
| Rating: | Fitch: BB
|
|
|
| Equity tranche
|
| Amount: | $92.15 million
|
| Securities: | Income notes
|
| Ratings: | Non-rated
|
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