By Cristal Cody
Tupelo, Miss., Dec. 17 – Sound Point Capital Management LP priced $460.25 million of notes due Jan. 20, 2028 in a collateralized loan obligation deal, according to a market source.
Sound Point CLO X, Ltd./Sound Point CLO X Inc. sold $2 million of class X senior secured floating-rate notes at Libor plus 100 basis points, $250 million of class A-1 senior secured floating-rate notes at Libor plus 165 bps and $42.5 million of 3.35% class A-2 senior secured fixed-rate notes.
The CLO also priced $49.5 million of class B senior secured floating-rate notes at Libor plus 250 bps; $27 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 350 bps; $22.5 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 425 bps; $22.5 million of class E junior secured deferrable floating-rate notes at Libor plus 675 bps and $44.25 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Sound Point Capital Management will manage the CLO, which is backed primarily by first-lien senior secured corporate loans.
The CLO will have a two-year non-call period and a four-year reinvestment period.
Proceeds from the deal will be used to purchase a $450 million portfolio of mostly senior secured leveraged loans.
Sound Point Capital has priced three CLO transactions over the year.
The New York City-based asset management firm placed three CLO deals in 2014.
| Issuer: | Sound Point CLO X, Ltd./Sound Point CLO X Inc.
|
| Amount: | $460.25 million
|
| Maturity: | Jan. 20, 2028
|
| 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: | Two years
|
| Pricing date: | Dec. 8
|
| Settlement date: | Dec. 17
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1 notes
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| Amount: | $250 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 165 bps
|
| Ratings: | Moody’s: Aaa
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| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $42.5 million
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| Securities: | Senior secured fixed-rate notes
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| Coupon: | 3.35%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
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| Amount: | $49.5 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 250 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
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| Amount: | $27 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $22.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $22.5 million
|
| Securities: | Junior secured deferrable floating-rate notes
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| Coupon: | Libor plus 675 bps
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| Rating: | Moody’s: Ba2
|
|
|
| Equity
|
| Amount: | $44.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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