By Cristal Cody
Tupelo, Miss., June 27 – Jefferies Finance LLC sold $562,525,000 of notes due 2026 in a new collateralized loan obligation transaction on Friday, according to a market source.
JFIN CLO 2014-II Ltd./JFIN CLO 2014-II LLC priced $312 million of class A-1A floating-rate notes at Libor plus 150 basis points; $31.75 million of 3.227% class A-1B fixed-rate notes; $52.7 million of class A-2A floating-rate notes at Libor plus 200 bps and $10 million of 4.476% class A-2B fixed-rate notes.
The CLO sold $25 million of class B-1 floating-rate notes at Libor plus 265 bps; $2.5 million of 5.544% class B-2 fixed-rate notes; $34.8 million of class C floating-rate notes at Libor plus 325 bps; $33.9 million of class D floating-rate notes at Libor plus 450 bps; $4.6 million of class E floating-rate notes at Libor plus 525 bps and $55,275,000 of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
Jefferies will manage the CLO, which is backed primarily by senior secured loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds from the offering will be used to purchase assets to reach a target portfolio of about $550 million of primarily leveraged loans.
The deal is Jefferies’ third CLO offering in 2014. The firm priced the $522.2 million JFIN CLO 2014 Ltd./JFIN CLO 2014 LLC transaction in February and the $309 million JFIN MM CLO 2014-II Ltd./JFIN MM CLO 2014-II LLC deal in March.
New York City-based Jefferies Finance, a commercial finance firm co-owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co., brought one CLO transaction in 2013.
| Issuer: | JFIN CLO 2014-II Ltd./JFIN CLO 2014-II LLC
|
| Amount: | $562,525,000
|
| Maturity: | 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Jefferies Finance LLC
|
| Call feature: | 2016
|
| Pricing date: | June 27
|
| Distribution: | Rule 144A
|
|
|
| Class A-1A notes
|
| Amount: | $312 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $31.75 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.227%
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2A notes
|
| Amount: | $52.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Ratings: | Non-rated
|
|
|
| Class A-2B notes
|
| Amount: | $10 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.476%
|
| Ratings: | Non-rated
|
|
|
| Class B-1 notes
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $2.5 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 5.544%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $34.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $33.9 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 450 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $4.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 525 bps
|
| Ratings: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $55,275,000
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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