By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – Saratoga Investment Advisors LLC priced $600 million of notes in a reset and third refinancing of a vintage 2013 collateralized loan obligation deal, according to a news release on Tuesday.
Saratoga Investment Corp. CLO 2013-1 Ltd. priced $330 million of class A-1-R-3 floating-rate notes at Libor plus 132 basis points and $60 million of class A-2-R-3 floating-rate notes at Libor plus 165 bps.
The CLO sold $55 million of class B-FL-R-3 floating-rate notes at Libor plus 180 bps, $11 million of class B-FXD-R-3 2.5372% fixed-rate notes, $23.5 million of class C-FL-R-3 floating-rate notes at Libor plus 240 bps and $6.5 million of class C-FXD-R-3 of 3.3103% fixed-rate notes.
Also, the CLO priced $36 million of class D-R-3 floating-rate notes at Libor plus 400 bps, $25.5 million of class E-R-3 floating-rate notes at Libor plus 750 bps, $16.5 million of class F-R-3 floating-rate notes at Libor plus 1,000 bps and $103.75 million of subordinated notes.
Saratoga Investment Advisors, which manages the CLO, will retain ownership of all of the class F-R-3 and subordinated notes.
The maturity on the reset notes was extended to April 20, 2033 from the refinanced maturity of Jan. 20, 2030. In addition, the non-call period was extended to Feb. 26, 2022 and the reinvestment period was extended to April 22, 2024.
The CLO originally closed in 2013 when the vehicle GSC Investment Corp. CLO 2007 Ltd., which was brought to market in 2008, was refinanced and renamed Saratoga Investment Corp. CLO 2013-1 Ltd.
The Saratoga CLO was refinanced for the first time on Nov. 15, 2016 and again on Dec. 14, 2018.
Saratoga Investment Advisors is an investment firm based in New York.
| Issuer: | Saratoga Investment Corp. CLO 2013-1 Ltd.
|
| Amount: | $600 million refinancing
|
| Maturity: | Jan. 20, 2030
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Goldman Sachs & Co. LLC
|
| Manager: | Saratoga Investment Advisors LLC
|
| Call feature: | Feb. 26, 2021
|
| Pricing date: | Feb. 16
|
| Settlement date: | Feb. 26
|
|
|
| Class A-1-R-3 notes
|
| Amount: | $330 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 132 bps
|
| Expected rating: | Moody’s: Aaa
|
|
|
| Class A-2-R-3 notes
|
| Amount: | $60 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Expected rating: | Moody’s: Aaa
|
|
|
| Class B-FL-R-3 notes
|
| Amount: | $55 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Expected rating: | Moody’s: Aa2
|
|
|
| Class B-FXD-R-3 notes
|
| Amount: | $11 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.5372%
|
| Expected rating: | Moody’s: Aa2
|
|
|
| Class C-FL-R-3 notes
|
| Amount: | $23.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Expected rating: | Moody’s: A2
|
|
|
| Class C-FXD-R-3 notes
|
| Amount: | $6.5 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.3103%
|
| Expected rating: | Moody’s: A2
|
|
|
| Class D-R-3 notes
|
| Amount: | $36 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Expected rating: | Moody’s: Baa3
|
|
|
| Class E-R-3 notes
|
| Amount: | $25.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 750 bps
|
| Expected rating: | Moody’s: Ba3
|
|
|
| Class F-R-3 notes
|
| Amount: | $16.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 1,000 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $103.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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