By Cristal Cody
Tupelo, Miss., July 23 – Shenkman Capital Management, Inc. priced $412.5 million of notes due July 20, 2027 in a collateralized loan obligation offering, according to a market source.
Jefferson Mill CLO Ltd./Jefferson Mill CLO LLC sold $2 million of class X floating-rate notes at Libor plus 100 basis points; $231 million of class A-1 floating-rate notes at Libor plus 150 bps; $25 million of 3.62% class A-2 fixed-rate notes; $41.5 million of class B-1 floating-rate notes at Libor plus 215 bps; $6.5 million of 4.47% class B-2 fixed-rate notes; $24 million of class C floating-rate notes at Libor plus 300 bps; $20 million of D floating-rate notes at Libor plus 350 bps; $20 million of class E floating-rate notes at Libor plus 560 bps; $8 million of class F floating-rate notes at Libor plus 650 bps and $34.5 million of subordinated notes.
BofA Merrill Lynch arranged the offering.
Shenkman Capital Management will manage the CLO.
The CLO has a three-year non-call period and a five-year reinvestment period.
The deal is backed primarily by first-lien senior secured corporate loans.
Proceeds from the transaction will be used to purchase a portfolio of about $400 million of primarily senior secured leveraged loans.
Shenkman Capital Management previously was in the primary market with the Jackson Mill CLO Ltd./Jackson Mill CLO LLC deal on April 16.
The New York-based investment firm brought two CLO transactions in 2014.
| Issuer: | Jefferson Mill CLO Ltd./Jefferson Mill CLO LLC
|
| Amount: | $412.5 million
|
| Maturity: | July 20, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: BofA Merrill Lynch
|
| Manager: | Shenkman Capital Management, Inc.
|
| Call feature: | 2018
|
| Pricing date: | June 26
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa (expected)
|
| Fitch: AAA
|
|
|
| Class A-1 notes
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| Amount: | $231 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa (expected)
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $25 million
|
| Securities: | Fixed-rate notes
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| Coupon: | 3.62%
|
| Ratings: | Moody’s: Aaa (expected)
|
| Fitch: AAA
|
|
|
| Class B-1 notes
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| Amount: | $41.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | Moody’s: Aa2 (expected)
|
|
|
| Class B-2 notes
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| Amount: | $6.5 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.47%
|
| Rating: | Moody’s: Aa2 (expected)
|
|
|
| Class C notes
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| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody’s: A2 (expected)
|
|
|
| Class D notes
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| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Moody’s: Baa3 (expected)
|
|
|
| Class E notes
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| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 560 bps
|
| Rating: | Moody’s: Ba3 (expected)
|
|
|
| Class F notes
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| Amount: | $8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | Moody’s: B3 (expected)
|
|
|
| Equity
|
| Amount: | $34.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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