By Cristal Cody
Tupelo, Miss., Sept. 23 - Salus Capital Partners LLC announced on Monday that it raised $300 million in a reopening of the Salus CLO 2012-1, Ltd./Salus CLO 2012-1, LLC collateralized loan obligation.
The deal includes class X senior secured floating-rate notes (DBRS: AAA); class A-2 senior secured floating-rate notes (DBRS: AAA); class B senior secured floating-rate notes (DBRS: AA); class C senior secured deferrable floating-rate notes (DBRS: A); class D secured deferrable floating-rate notes (DBRS: BBB); class E secured deferrable floating-rate notes (DBRS: BB); class F secured deferrable floating-rate notes (DBRS: B) and subordinated notes.
The notes are due March 5, 2021, except for the class X tranche, which is due March 5, 2015.
The securities rated AAA through BB, one class of unrated secured notes and the subordinated notes were placed with third-party investors and Salus affiliates, according to the company. As part of the transaction, Salus and its affiliates will contribute to the CLO about $167 million of their existing portfolio of loans.
"The overwhelming acceptance of the upsize from both existing and new investors demonstrates the continuing market validation of the Salus direct loan origination platform," Andrew H. Moser, president of Salus Capital Partners, said in a release. "With like-minded investors and a team of veteran leadership, we are well positioned to foster a successful value proposition as we continue to serve the needs of the corporate middle-market."
Natixis Securities Americas LLC acted as arranger and placement agent for the transaction, which closed on Thursday.
Salus Capital Partners II, LLC is the CLO manager.
In the original offering that closed on Feb. 6, 2013, according to a market source, Salus sold $25 million of class X notes at Libor plus 250 basis points; $100 million of class A-2 notes at Libor plus 250 bps; $15 million of class B notes at Libor plus 450 bps; $10 million of class C notes at Libor plus 550 bps; $15 million of class D notes at Libor plus 800 bps; $15 million of class E notes at Libor plus 1,050 bps; $7.5 million of class F notes at Libor plus 1,150 bps and $62.5 million of subordinated notes.
The current total outstanding is $550 million.
The CLO is backed by a portfolio of primarily senior secured first-lien middle market corporate loans and will invest primarily in senior secured asset-based loans originated by Salus.
The vehicle has a three-year non-call period and a three-year reinvestment period.
Needham, Mass.-based Salus Capital Partners is a subsidiary of the Harbinger Group, Inc. and provides asset-based loans to the middle market sector.
| Issuer: | Salus CLO 2012-1, Ltd./Salus CLO 2012-1, LLC
|
| Amount: | $300 million reopening
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash-flow CLO
|
| Placement agent: | Natixis Securities Americas LLC
|
| Manager: | Salus Capital Partners II, LLC
|
| Call feature: | Three years
|
| Settlement date: | Sept. 19
|
| Total outstanding: | $550 million
|
|
|
| Class X notes
|
| Maturity: | March 5, 2015
|
| Securities: | Senior secured floating-rate notes
|
| Rating: | DBRS: AAA
|
|
|
| Class A-2 notes
|
| Maturity: | March 5, 2021
|
| Securities: | Senior secured floating-rate notes
|
| Rating: | DBRS: AAA
|
|
|
| Class B notes
|
| Maturity: | March 5, 2021
|
| Securities: | Senior secured floating-rate notes
|
| Rating: | DBRS: AA
|
|
|
| Class C notes
|
| Maturity: | March 5, 2021
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Rating: | DBRS: A
|
|
|
| Class D notes
|
| Maturity: | March 5, 2021
|
| Securities: | Secured deferrable floating-rate notes
|
| Rating: | DBRS: BBB
|
|
|
| Class E notes
|
| Maturity: | March 5, 2021
|
| Securities: | Secured deferrable floating-rate notes
|
| Rating: | DBRS: BB
|
|
|
| Class F notes
|
| Maturity: | March 5, 2021
|
| Securities: | Secured deferrable floating-rate notes
|
| Maturity: | March 2021
|
| Rating: | DBRS: B
|
|
|
| Equity tranche
|
| Maturity: | March 5, 2021
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
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