By Cristal Cody
Tupelo, Miss., May 9 - KCAP Senior Funding I, LLC sold a $140 million collateralized loan obligation of floating-rate and subordinated notes due July 20, 2024, according to a market source on Thursday.
The deal's equity tranche was downsized by $25 million.
KCAP sold $77.25 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 basis points; $9 million of class B-1 senior secured floating-rate notes (Aa2/AA/) at Libor plus 325 bps; $10 million of class C-1 secured deferrable floating-rate notes (A2/A/) at Libor plus 425 bps; $9 million of class D-1 secured deferrable floating-rate notes (Baa2/BBB/) at Libor plus 525 bps; and $34.75 million of subordinated notes.
Guggenheim Securities LLC was the underwriter.
KCAP Financial, Inc. will manage the cash-flow CLO, which is backed by a revolving pool of broadly syndicated senior secured loans.
The notes have a non-call period that ends in July 2015.
New York City-based KCAP Financial's portfolio companies, Katonah Debt Advisors and Trimaran Advisors, manage CLO funds, which invest in broadly syndicated loans, high-yield bonds and other credit instruments.
| Issuer: | KCAP Senior Funding I, LLC
|
| Amount: | $140 million
|
| Maturity: | July 20, 2024
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash-flow CLO
|
| Placement agent: | Guggenheim Securities LLC
|
| Manager: | KCAP Financial, Inc.
|
| Call feature: | July 2015
|
| Settlement date: | June 18
|
|
|
| Class A-1 notes
|
| Amount: | $77.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $9 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA
|
|
|
| Class C-1 notes
|
| Amount: | $10 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| Class D-1 notes
|
| Amount: | $9 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 525 bps
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Equity tranche
|
| Amount: | $34.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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