By Cristal Cody
Tupelo, Miss., Dec. 4 – Saratoga Investment Advisors LLC priced $566.5 million of notes in a reset and second refinancing of a vintage 2013 collateralized loan obligation deal, according to a market source and a news release on Tuesday.
Saratoga Investment Corp. CLO 2013-1 Ltd. priced $255 million of class A-1FL-R-2 floating-rate notes at Libor plus 125 basis points, $25 million of 4.19% class A-1FXD-R-2 fixed-rate notes and $40 million of class A-2-R-2 floating-rate notes at Libor plus 175 bps.
The CLO sold $59.5 million of class B-R-2 floating-rate notes at Libor plus 230 bps, $22.5 million of class C-R-2 floating-rate notes at Libor plus 275 bps and $31 million of class D-R-2 floating-rate notes at Libor plus 375 bps.
Also, the CLO priced $27 million of class E-1-R-2 floating-rate notes at Libor plus 587 bps, which step up to Libor plus 800 bps in January 2022, and $27 million of class E-2-R-2 interest only notes with a 0% coupon that will step up to Libor plus 200 bps in January 2022.
In addition, Saratoga Investment Advisors priced $2.5 million of class F-R-2 floating-rate notes at Libor plus 875 bps, $7.5 million of class G-R-2 floating-rate notes at Libor plus 1,000 bps and $69.5 million of subordinated notes.
Saratoga Investment Advisors, which manages the CLO, will retain ownership of all of the class F-R-2, G-R-2 and subordinated notes.
Goldman Sachs & Co. LLC was the refinancing agent.
The maturity on the reset notes was extended to Jan. 20, 2030 from the refinanced maturity of Oct. 20, 2025. In addition, the non-call period was extended to Jan. 20, 2020 and the reinvestment period was extended to Jan. 20, 2021.
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.
In that $282.4 million refinancing, the CLO sold $170 million of class A-1-R floating-rate notes at Libor plus 155 bps; $20 million of class A-2-R floating-rate notes at Libor plus 175 bps; $44.8 million of class B-R floating-rate notes at Libor plus 270 bps; $14 million of class D-R floating-rate notes at Libor plus 470 bps; $13.1 million of class E-R floating-rate notes at Libor plus 665 bps and $4.5 million of class F-R floating-rate notes at Libor plus 850 bps.
Proceeds will be used to redeem the outstanding notes.
Saratoga Investment Advisors is an investment firm based in New York.
| Issuer: | Saratoga Investment Corp. CLO 2013-1 Ltd.
|
| Amount: | $566.5 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: | Jan. 20, 2020
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 14
|
|
|
| Class A-1FL-R-2 notes
|
| Amount: | $255 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
|
|
| Class A-1FXD-R-2 notes
|
| Amount: | $25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.19%
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
|
|
| Class A-2-R-2 notes
|
| Amount: | $40 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | Moody’s: Aaa expected
|
|
|
| Class B-R-2 notes
|
| Amount: | $59.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C-R-2 notes
|
| Amount: | $22.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D-R-2 notes
|
| Amount: | $31 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E-1-R-2 notes
|
| Amount: | $27 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 587 bps; steps up to Libor plus 800 bps in January 20022
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Class E-2-R-2 notes
|
| Amount: | $27 million
|
| Securities: | Floating-rate notes
|
| Coupon: | 0%; steps up to Libor plus 200 bps in January 2022
|
| Ratings: | Non-rated
|
|
|
| Class F-R-2 notes
|
| Amount: | $2.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 875 bps
|
| Rating: | Moody’s: B3 expected
|
|
|
| Class G-R-2 notes
|
| Amount: | $7.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 1,000 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $69.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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