By Cristal Cody
Tupelo, Miss., May 19 - LCM Asset Management LLC sold an upsized $725.6 million of notes due 2026 in the LCM XVI LP/LCM XVI LLC CLO transaction, according to an informed source.
The deal was upsized from $621.21 million.
The CLO priced $4.5 million of class X floating-rate notes at Libor plus 100 basis points; $441 million of class A floating-rate notes at Libor plus 150 bps; $84.7 million of class B floating-rate notes at Libor plus 200 bps; $56 million of class C floating-rate notes at Libor plus 285 bps; $34.3 million of class D floating-rate notes at Libor plus 360 bps; $33.6 million of class E floating-rate notes at Libor plus 460 bps and $71.5 million of limited partnership certificates in the equity tranche.
Deutsche Bank Securities Inc. was the placement agent.
LCM Asset Management will manage the CLO, which is backed primarily by first-lien senior secured corporate loans.
The CLO will have a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $600 million of primarily senior secured leveraged loans.
LCM Asset Management refinanced $370.5 million of notes in the LCM X LP/LCM X LLC CLO in April and priced the $624 million LCM XV LP/LCM XV LLC transaction in January.
The New York City-based asset management firm brought two CLO deals in 2013.
| Issuer: | LCM XVI LP/LCM XVI LLC
|
| Amount: | $725.6 million
|
| Maturity: | 2026
|
| Securities: | Floating-rate notes and LP certificates
|
| Structure: | Cash flow CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | LCM Asset Management LLC
|
| Call feature: | 2016
|
| Pricing date: | May 12
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $4.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Standard & Poor's: AAA Expected
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $441 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Standard & Poor's: AAA Expected
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $84.7 million
|
| Securities: | Senior deferrable floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | Standard & Poor's: AA Expected
|
|
|
| Class C notes
|
| Amount: | $56 million
|
| Securities: | Senior deferrable floating-rate notes
|
| Coupon: | Libor plus 285 bps
|
| Rating: | Standard & Poor's: A Expected
|
|
|
| Class D notes
|
| Amount: | $34.3 million
|
| Securities: | Senior deferrable floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Rating: | Standard & Poor's: BBB Expected
|
|
|
| Class E notes
|
| Amount: | $33.6 million
|
| Securities: | Senior deferrable floating-rate notes
|
| Coupon: | Libor plus 460 bps
|
| Rating: | Standard & Poor's: BB- Expected
|
|
|
| Equity tranche
|
| Amount: | $71.5 million
|
| Securities: | LP certificates
|
| Ratings: | Non-rated
|
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