By Cristal Cody
Tupelo, Miss., July 2 – Shenkman Capital Management, Inc. priced $552.5 million of notes due July 15, 2026 in a collateralized loan obligation deal, according to a market source on Wednesday.
Adams Mill CLO Ltd./Adams Mill CLO LLC sold $230,625,000 of class A-1 floating-rate notes (//AAA) at Libor plus 148 basis points and $105 million of class A-2 floating-rate notes (//AAA) at Libor plus 143 bps.
The CLO priced $46,625,000 of class B-1 floating-rate notes at Libor plus 200 bps; $25 million of 4.11% class B-2 fixed-rate notes; $17,125,000 of class C-1 floating-rate notes at Libor plus 300 bps; $7 million of 5.302% class C-2 fixed-rate notes; $30,375,000 of class D-1 floating-rate notes at Libor plus 350 bps; $2 million of class D-2 floating-rate notes at Libor plus 425 bps; $22.75 million of class E-1 floating-rate notes at Libor plus 500 bps; $6 million of class E-2 floating-rate notes at Libor plus 625 bps and $11.75 million of class F floating-rate notes at Libor plus 569 bps.
The deal included $48.25 million of subordinated notes in the equity tranche.
Nomura Securities International, Inc. arranged the offering.
Shenkman Capital Management will manage the CLO, which is backed primarily by first-lien senior secured loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds from the transaction will be used to purchase about a $535 million portfolio of mostly senior secured leveraged loans.
Shenkman was last in the primary market on April 10 with the $520.6 million Washington Mill CLO Ltd./Washington Mill CLO LLC offering.
The New York-based investment firm priced two CLO deals in 2013.
| Issuer: | Adams Mill CLO Ltd./Adams Mill CLO LLC
|
| Amount: | $552.5 million
|
| Maturity: | July 15, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Nomura Securities International, Inc.
|
| Manager: | Shenkman Capital Management, Inc.
|
| Call feature: | 2016
|
| Pricing date: | July 2
|
| Settlement date: | Aug. 12
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $230,625,000
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 148 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $105 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 143 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $46,625,000
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.11%
|
| Ratings: | Non-rated
|
|
|
| Class C-1 notes
|
| Amount: | $17,125,000
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Ratings: | Non-rated
|
|
|
| Class C-2 notes
|
| Amount: | $7 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 5.302%
|
| Ratings: | Non-rated
|
|
|
| Class D-1 notes
|
| Amount: | $30,375,000
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Ratings: | Non-rated
|
|
|
| Class D-2 notes
|
| Amount: | $2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Ratings: | Non-rated
|
|
|
| Class E-1 notes
|
| Amount: | $22.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Ratings: | Non-rated
|
|
|
| Class E-2 notes
|
| Amount: | $6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Ratings: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $11.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 569 bps
|
| Ratings: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $48.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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