By Cristal Cody
Tupelo, Miss., Dec. 9 - New York Life Investment Management LLC sold and closed on a $409.75 million collateralized loan obligation offering of notes due Jan. 19, 2026, according to market sources.
Flatiron CLO 2013-1 Ltd./Flatiron CLO 2013-1 LLC priced $250.75 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Libor plus 140 basis points; $55.75 million of class A-2 senior secured floating-rate notes (Aa2//AA) at Libor plus 200 bps; $17 million of class B senior secured deferrable floating-rate notes (A2//) at Libor plus 275 bps; $25 million of class C senior secured deferrable floating-rate notes (Baa3//) at Libor plus 360 bps; $18 million of class D senior secured deferrable floating-rate notes (Ba3//) at Libor plus 490 bps; $12 million of class E senior secured deferrable floating-rate notes (B2//) at Libor plus 535 bps and $31.25 million of subordinated notes.
BofA Merrill Lynch arranged the transaction.
The CLO has a two-year non-call period and a four-year reinvestment period.
New York Life Investment Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans.
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 Investments is a subsidiary of mutual life insurance company New York Life Insurance Co.
| Issuer: | Flatiron CLO 2013-1 Ltd./Flatiron CLO 2013-1 LLC
|
| Amount: | $409.75 million
|
| Maturity: | Jan. 19, 2026
|
| Securities: | Floating-rated and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | New York Life Investment Management LLC
|
| Call feature: | Non-callable until 2016
|
| Settlement date: | Dec. 5
|
|
|
| Class A-1 notes
|
| Amount: | $250.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $55.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Ratings: | Moody's: Aa2
|
| Fitch: AA
|
|
|
| Class B notes
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| Amount: | $17 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody's: A2
|
|
|
| Class C notes
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| Amount: | $25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Rating: | Moody's: Baa3
|
|
|
| Class D notes
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| Amount: | $18 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 490 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Class E notes
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| Amount: | $12 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 535 bps
|
| Rating: | Moody's: B2
|
|
|
| Equity tranche
|
| Amount: | $31.5 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
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