By Cristal Cody
Eureka Springs, Ark., Aug. 23 – NewStar Capital, LLC sold $409.75 million of notes due Oct. 20, 2028 in a broadly syndicated collateralized loan obligation transaction, according to a market source on Tuesday.
Arch Street CLO Ltd./Arch Street CLO LLC priced $2.5 million of class X floating-rate notes at Libor plus 125 basis points; $256 million of class A floating-rate notes at Libor plus 165 bps; $48 million of class B floating-rate notes at Libor plus 224 bps; $20 million of class C floating-rate notes at Libor plus 300 bps; $22.75 million of class D floating-rate notes at Libor plus 420 bps; $21 million of class E floating-rate notes at Libor plus 695 bps; $5.5 million of class F floating-rate notes at Libor plus 860 bps and $34 million of subordinated notes.
Credit Suisse Securities (USA) LLC arranged the deal.
The CLO has a two-year non-call period and a four-year reinvestment period.
The transaction is backed entirely by first-lien senior secured loans.
Proceeds from the deal will be used to purchase a $400 million portfolio of mostly senior secured leveraged loans.
NewStar Capital is a subsidiary of Boston-based NewStar Financial, Inc., which priced a middle-market CLO deal in February.
NewStar Financial priced three middle-market CLOs in 2015.
| Issuer: | Arch Street CLO Ltd./Arch Street CLO LLC
|
| Amount: | $409.75 million
|
| Maturity: | Oct. 20, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | NewStar Capital, LLC
|
| Call feature: | Two years
|
| Settlement date: | Sept. 15
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $2.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A notes
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| Amount: | $256 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B notes
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| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 224 bps
|
| Rating: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Fitch: A
|
|
|
| Class D notes
|
| Amount: | $22.75 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 420 bps
|
| Rating: | Fitch: BBB-
|
|
|
| Class E notes
|
| Amount: | $21 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 695 bps
|
| Rating: | Non-rated
|
|
|
| Class F notes
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| Amount: | $5.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 860 bps
|
| Rating: | Non-rated
|
|
|
| Equity
|
| Amount: | $34 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
|
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