By Cristal Cody
Tupelo, Miss., May 14 - Hildene Leveraged Credit, LLC priced $413.75 million of notes due 2026 in a collateralized loan obligation deal, according to a market source.
Hildene CLO II, Ltd./Hildene CLO II LLC sold $252 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 145 basis points; $24.25 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 220 bps; $25 million of 4.44% class B-2 senior secured fixed-rate notes (Aa2); $22 million of class C deferrable floating-rate notes (A2) at Libor plus 290 bps; $24.25 million of class D deferrable floating-rate notes (Baa3) at Libor plus 370 bps; $19.75 million of class E deferrable floating-rate notes (Ba3) at Libor plus 510 bps; $6.5 million of class F deferrable floating-rate notes (B3) at Libor plus 595 bps and $40 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
Hildene Leveraged Credit will manage the CLO, which is backed primarily by first-lien senior secured corporate loans and eligible investments.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds from the deal will be used to purchase a portfolio of about $400 million of leveraged loans.
The firm priced the $309.75 million Hildene CLO I Ltd./Hildene CLO I LLC deal in December.
Hildene Leveraged Credit is part of Hildene Capital Management, LLC, an asset management firm based in Stamford, Conn.
| Issuer: | Hildene CLO II, Ltd./Hildene CLO II LLC
|
| Amount: | $413.75 million
|
| Maturity: | 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Hildene Leveraged Credit, LLC
|
| Call feature: | 2016
|
| Pricing date: | May 8
|
| Settlement date: | June 3
|
|
|
| Class A notes
|
| Amount: | $252 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $24.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Moody's: Aa2
|
|
|
| Class B-2 notes
|
| Amount: | $25 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.44%
|
| Rating: | Moody's: Aa2
|
|
|
| Class C notes
|
| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | Moody's: A2
|
|
|
| Class D notes
|
| Amount: | $24.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Moody's: Baa3
|
|
|
| Class E notes
|
| Amount: | $19.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 510 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Class F notes
|
| Amount: | $6.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 595 bps
|
| Rating: | Moody's: B3
|
|
|
| Equity tranche
|
| Amount: | $40 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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