By Cristal Cody
Tupelo, Miss., May 12 – Sankaty Advisors LLC sold $516.5 million of notes due Aug. 5, 2027 in the Avery Point CLO VI, Ltd./Avery Point CLO VI, Corp. offering, according to a market source.
The CLO priced $4 million of class X floating-rate notes at Libor plus 100 basis points; $302.5 million of class A floating-rate notes at Libor plus 145 bps; $57 million of class B floating-rate notes at Libor plus 195 bps; $43 million of class C floating-rate notes at Libor plus 272 bps; $30 million of class D floating-rate notes at Libor plus 343 bps; $24 million of class E-1 floating-rate notes at Libor plus 550 bps; $1 million of class E-2 floating-rate notes at Libor plus 600 bps; $9 million of class F floating-rate notes at Libor plus 680 bps and $46 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Sankaty Advisors is the CLO manager.
The CLO has a three-year non-call period and a five-year reinvestment period.
The CLO is backed mainly by broadly syndicated first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase a portfolio of about $500 million of leveraged loans.
Boston-based Sankaty Advisors priced two CLO deals in 2014.
| Issuer: | Avery Point CLO VI, Ltd./Avery Point CLO VI, Corp.
|
| Amount: | $516.5 million
|
| Maturity: | Aug. 5, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Sankaty Advisors LLC
|
| Call feature: | 2018
|
| Pricing date: | May 6
|
| Settlement date: | June 3
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa (expected)
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $302.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa (expected)
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $57 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2 (expected)
|
|
|
| Class C notes
|
| Amount: | $43 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 272 bps
|
| Price: | 99.75
|
| Rating: | Moody’s: A2 (expected)
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 343 bps
|
| Price: | 96.53
|
| Rating: | Moody’s: Baa3 (expected)
|
|
|
| Class E-1 notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Price: | 94.47
|
| Rating: | Moody’s: Ba3 (expected)
|
|
|
| Class E-2 notes
|
| Amount: | $1 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 600 bps
|
| Price: | 97.93
|
| Rating: | Moody’s: Ba3 (expected)
|
|
|
| Class F notes
|
| Amount: | $9 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 680 bps
|
| Price: | 90.28
|
| Rating: | Moody’s: B3 (expected)
|
|
|
| Equity
|
| Amount: | $46 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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