By Cristal Cody
Tupelo, Miss., June 22 – Marathon Asset Management LP sold $461.37 million of notes due July 24, 2028 in a collateralized loan obligation offering, according to a market source.
Marathon CLO VIII Ltd./Marathon CLO VIII LLC priced $120 million of class A-1a senior secured floating-rate notes at Libor plus 149 basis points, $143.5 million of class A-1b senior secured floating-rate notes at Libor plus 149 bps, $20 million of 3.48% class A-1c senior secured fixed-rate notes and $63 million of class A-2 senior secured floating-rate notes at Libor plus 200 bps.
The CLO also priced $19.2 million of class B senior secured deferrable floating-rate notes at Libor plus 295 bps, $26.7 million of class C senior secured deferrable floating-rate notes at Libor plus 405 bps, $21.6 million of class D secured deferrable floating-rate notes at Libor plus 605 bps and $47.37 million of subordinated notes.
J.P. Morgan Securities LLC was the placement agent.
Marathon 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 and eligible investments.
Proceeds from the offering will be used to purchase a portfolio of about $450 million of mostly senior secured leveraged loans.
Marathon Asset Management, a New York City-based global credit manager, brought two CLO transactions in 2014.
| Issuer: | Marathon CLO VIII Ltd./Marathon CLO VIII LLC
|
| Amount: | $461.37 million
|
| Maturity: | July 24, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Marathon Asset Management LP
|
| Call feature: | 2017
|
| Pricing date: | June 15
|
| Settlement date: | July 24
|
| Distribution: | Rule 144A
|
|
|
| Class A-1a notes
|
| Amount: | $120 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 149 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1b notes
|
| Amount: | $143.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 149 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1c notes
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| Amount: | $20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.48%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $63 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $19.2 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 295 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
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| Amount: | $26.7 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 405 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
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| Amount: | $21.6 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 605 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $47.37 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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