By Cristal Cody
Tupelo, Miss., Dec. 24 - Hildene Leveraged Credit, LLC sold $309.75 million of notes due Jan. 17, 2026 in the firm's new collateralized loan obligation offering, according to a market source.
The Hildene CLO I Ltd./Hildene CLO I LLC vehicle priced $187.5 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 150 basis points; $28.5 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 220 bps; $10 million of 4.65% class B-2 senior secured fixed-rate notes (Aa2); $16.5 million of class C deferrable mezzanine floating-rate notes (A2) at Libor plus 300 bps; $18.5 million of class D deferrable mezzanine floating-rate notes (Baa3) at Libor plus 375 bps; $14.5 million of class E deferrable mezzanine floating-rate notes (Ba3) at Libor plus 515 bps; $6 million of class F deferrable mezzanine floating-rate notes (B2) at Libor plus 625 bps and $28.25 million of subordinated notes.
BofA Merrill Lynch arranged the transaction.
The CLO has a non-call period that ends Jan. 17, 2016 and a reinvestment period that ends Jan. 17, 2018.
The CLO is collateralized primarily by broadly syndicated senior secured corporate loans.
Hildene Leveraged Credit will manage the CLO.
Proceeds will be used to purchase assets to reach a target portfolio of about $300 million of leveraged loans.
Hildene Leveraged Credit is a division of New York-based asset management firm Hildene Capital Management, LLC.
| Issuer: | Hildene CLO I Ltd./Hildene CLO I LLC
|
| Amount: | $309.75 million
|
| Maturity: | Jan. 17, 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: | Jan. 17, 2016
|
| Settlement date: | Jan. 9
|
|
|
| Class A notes
|
| Amount: | $187.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $28.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Moody's: Aa2
|
|
|
| Class B-2 notes
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| Amount: | $10 million
|
| Securities: | Senior deferrable fixed-rate notes
|
| Coupon: | 4.65%
|
| Rating: | Moody's: Aa2
|
|
|
| Class C notes
|
| Amount: | $16.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody's: A2
|
|
|
| Class D notes
|
| Amount: | $18.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Moody's: Baa3
|
|
|
| Class E notes
|
| Amount: | $14.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 515 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Class F notes
|
| Amount: | $6 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Rating: | Moody's: B2
|
|
|
| Equity tranche
|
| Amount: | $28.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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