By Cristal Cody
Tupelo, Miss., March 11 - Western Asset Management Co. brought an upsized $579.27 million of notes due April 21, 2025 in a previously announced collateralized loan obligation transaction, according to an informed source on Tuesday.
The Mountain Hawk III CLO, Ltd./Mountain Hawk III CLO LLC priced $346.25 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 basis points, 5 bps tighter than price talk.
The CLO also sold $69.25 million of class B senior secured floating-rate notes (Aa2) at Libor plus 210 bps; $45.75 million of class C secured deferrable floating-rate notes (A2) at Libor plus 280 bps; $30.75 million of class D secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $24.5 million of class E secured deferrable floating-rate notes (Ba2) at Libor plus 485 bps and $62.77 million of subordinated notes.
The deal was upsized from $400 million.
Deutsche Bank Securities Inc. was the placement agent.
Western Asset Management will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated first-lien senior secured loans.
The CLO has a non-call period that ends in April 2016 and a reinvestment period that ends in April 2018.
Western Asset Management, a Pasadena, Calif.-based fixed income manager, was in the primary market twice in 2013 with the $501.25 million Mountain Hawk I CLO Ltd./Mountain Hawk I CLO LLC offering and the $518.05 million Mountain Hawk II CLO Ltd./Mountain Hawk II CLO LLC deal.
| Issuer: | Mountain Hawk III CLO Ltd./Mountain Hawk III CLO LLC
|
| Amount: | $579.27 million, increased from $400 million
|
| Maturity: | April 21, 2025
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | Western Asset Management Co.
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| Call feature: | April 2016
|
| Pricing date: | March 4
|
| Settlement date: | April 11
|
|
|
| Class A notes
|
| Amount: | $346.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| Price talk: | Libor plus 155 bps
|
|
|
| Class B notes
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| Amount: | $69.25 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 210 bps
|
| Rating: | Moody's: Aa2
|
|
|
| Class C notes
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| Amount: | $45.75 million
|
| Securities: | Secured deferrable floating-rate notes
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| Coupon: | Libor plus 280 bps
|
| Rating: | Moody's: A2
|
|
|
| Class D notes
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| Amount: | $30.75 million
|
| Securities: | Secured deferrable floating-rate notes
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| Coupon: | Libor plus 350 bps
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| Rating: | Moody's: Baa3
|
|
|
| Class E notes
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| Amount: | $24.5 million
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| Securities: | Secured deferrable floating-rate notes
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| Coupon: | Libor plus 485 bps
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| Rating: | Moody's: Ba2
|
|
|
| Equity tranche
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| Amount: | $62.77 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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