By Cristal Cody
Tupelo, Miss., June 5 – A New York Life Insurance Co. affiliate priced $412.5 million of notes due July 17, 2026 in a collateralized loan obligation offering on Thursday, according to market sources.
Flatiron CLO 2014-1 Ltd./ Flatiron CLO 2014-1 LLC sold $256 million of class A-1 floating-rate notes (//AAA) at Libor plus 140 basis points; $45.5 million of class A-2 floating-rate notes at Libor plus 190 bps; $21 million of class B floating-rate notes at Libor plus 285 bps; $25.5 million of class C floating-rate notes at Libor plus 330 bps; $18.5 million of class D floating-rate notes at Libor plus 500 bps and $46 million of subordinated notes.
BofA Merrill Lynch arranged the transaction.
NYL Investors LLC will manage the CLO.
The deal is backed primarily by senior secured corporate loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to repay interim financing and to purchase assets to reach a target portfolio of about $400 million of leveraged loans.
New York Life Insurance affiliate New York Life Investment Management LLC brought the $409.75 million Flatiron CLO 2013-1 Ltd./ Flatiron CLO 2013-1 LLC deal in November.
| Issuer: | Flatiron CLO 2014-1 Ltd./ Flatiron CLO 2014-1 LLC
|
| Amount: | $412.5 million
|
| Maturity: | July 17, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | NYL Investors LLC
|
| Call feature: | July 2016
|
| Pricing date: | June 5
|
| Settlement date: | July 15
|
|
|
| Class A-1 notes
|
| Amount: | $256 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $45.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $21 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 285 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $25.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $18.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Ratings: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $46 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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