By Cristal Cody
Tupelo, Miss., June 30 – Sound Point Capital Management LP closed Tuesday on a new $399.32 million broadly syndicated collateralized loan obligation offering of notes due July 20, 2030, according to market sources.
Sound Point CLO XXVI, Ltd./Sound Point CLO XXVI Inc. priced $208 million of class A-1A floating-rate notes at Libor plus 185 basis points, $30 million of 2.231% class A-1B fixed-rate notes, $10 million of class A-2 floating-rate loans at Libor plus 225 bps, $47 million of class B-1 floating-rate notes at Libor plus 240 bps and $5 million of 2.978% class B-2 fixed-rate notes.
The CLO sold $24 million of class C deferrable floating-rate notes at Libor plus 330 bps, $22 million of class D deferrable floating-rate notes at Libor plus 470 bps, $12 million of class E deferrable floating-rate notes at Libor plus 708 bps and $41.32 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
Sound Point Capital Management will manage the CLO.
The CLO has a one-year non-call period and a two-year reinvestment period.
The offering is the manager’s first dollar-denominated CLO issuance of the year.
The New York City-based asset management firm priced a euro-denominated CLO in February.
| Issuer: | Sound Point CLO XXVI, Ltd./Sound Point CLO XXVI Inc.
|
| Amount: | $399.32 million
|
| Maturity: | July 20, 2030
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | One year
|
| Pricing date: | June 5
|
| Settlement date: | June 30
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1A notes
|
| Amount: | $208 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $30 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.231%
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $10 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Ratings: | S&P: Non-rated
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $47 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2 notes
|
| Amount: | $5 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.978%
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $24 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 470 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $12 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 708 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $41.32 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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