By Cristal Cody
Tupelo, Miss., July 11 – LCM Asset Management LLC sold $460.73 million of notes due July 16, 2031 in the LCM 27 Ltd./LCM 27 LLC collateralized loan obligation deal, according to a market source.
The CLO priced $2.25 million of class X floating-rate notes at Libor plus 65 basis points, $272.25 million of class A-1 floating-rate notes at Libor plus 108 bps, $22.5 million of class A-2 floating-rate notes at Libor plus 130 bps and $47.25 million of class B floating-rate notes at Libor plus 155 bps.
LCM 27 also sold $27 million of class C deferrable floating-rate notes at Libor plus 195 bps; $27 million of class D deferrable floating-rate notes at Libor plus 295 bps; $16.88 million of class E deferrable floating-rate notes at Libor plus 560 bps and $45.6 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
LCM Asset Management will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.
LCM has placed two new CLOs year to date.
The asset management firm, a subsidiary of Tetragon Financial Group Ltd., is based in New York City.
| Issuer: | LCM 27 Ltd./LCM 27 LLC
|
| Amount: | $460.73 million
|
| Maturity: | July 16, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | LCM Asset Management LLC
|
| Call feature: | Two years
|
| Pricing date: | July 2
|
| Settlement date: | Aug. 14
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $2.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $272.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 108 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $22.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Ratings: | S&P: Non-rated
|
|
|
| Class B notes
|
| Amount: | $47.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $27 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $27 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 295 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $16.88 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 560 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $45.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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