By Cristal Cody
Tupelo, Miss., Aug. 1 - Sound Point Capital Management LP raised $420.75 million in the Sound Point CLO III, Ltd. offering of notes due Aug. 22, 2025, according to informed sources.
Sound Point sold the $248 million tranche of class A senior floating-rate notes (Aaa//AAA) at Libor plus 135 basis points in the Rule 144A deal.
In the rest of the capital structure, the CLO priced $4 million of class X senior floating-rate notes (Aaa//AAA) at Libor plus 100 bps; $53.5 million of class B senior floating-rate notes (Aa2) at Libor plus 200 bps; $20 million of class C-1 floating-rate mezzanine notes (A2) at Libor plus 270 bps; $5 million of 5.17% class C-2 fixed-rate mezzanine notes (A2); $23.5 million of class D floating-rate mezzanine notes (Baa3) at Libor plus 390 bps; $19 million of class E floating-rate junior notes (Ba3) at Libor plus 460 bps and $8.75 million of class F floating-rate junior notes (B2) at Libor plus 535 bps.
The deal also included $39 million of subordinated notes.
Morgan Stanley & Co. LLC was the underwriter.
Sound Point Capital Management will manage the CLO, which is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
The portfolio is expected to be about 70% ramped at closing and 100% ramped within the following six months.
The CLO has a two-year non-call period and a four-year reinvestment period.
The New York-based asset manager plans to use the proceeds to purchase a $400 million portfolio of primarily leveraged loans.
| Issuer: | Sound Point CLO III, Ltd.
|
| Amount: | $420.75 million
|
| Maturity: | Aug. 22, 2025
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash-flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | 2015
|
| Settlement date: | Aug. 22
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $248 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $53.5 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Ratings: | Moody's: Aa2
|
|
|
| Class C-1 notes
|
| Amount: | $20 million
|
| Securities: | Floating-rate mezzanine notes
|
| Coupon: | Libor plus 270 bps
|
| Ratings: | Moody's: A2
|
|
|
| Class C-2 notes
|
| Amount: | $5 million
|
| Securities: | Fixed-rate mezzanine notes
|
| Coupon: | 5.17%
|
| Ratings: | Moody's: A2
|
|
|
| Class D notes
|
| Amount: | $23.5 million
|
| Securities: | Floating-rate mezzanine notes
|
| Coupon: | Libor plus 390 bps
|
| Ratings: | Moody's: Baa3
|
|
|
| Class E notes
|
| Amount: | $19 million
|
| Securities: | Floating-rate junior notes
|
| Coupon: | Libor plus 460 bps
|
| Ratings: | Moody's: Ba3
|
|
|
| Class F notes
|
| Amount: | $8.75 million
|
| Securities: | Floating-rate junior notes
|
| Coupon: | Libor plus 535 bps
|
| Ratings: | Moody's: B2
|
|
|
| Equity tranche
|
| Amount: | $39 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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