By Cristal Cody
Eureka Springs, Ark., Oct. 20 – Sound Point Capital Management LP sold $715 million of notes due Jan. 23, 2029 in the Sound Point CLO XIV, Ltd./Sound Point CLO XIV LLC transaction, according to a market source on Thursday.
The CLO priced $451.5 million of class A floating-rate notes at Libor plus 153 basis points; $55.5 million of class B-1 floating-rate notes at Libor plus 200 bps; $25 million of 3.4195% class B-2 fixed-rate notes; $42 million of class C floating-rate notes at Libor plus 265 bps; $35 million of class D floating-rate notes at Libor plus 385 bps; $35 million of class E floating-rate notes at Libor plus 665 bps and $71 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
Sound Point Capital will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is backed primarily by first-lien senior secured loans.
Proceeds from the offering will be used to purchase a $700 million portfolio of mainly senior secured leveraged loans.
Sound Point Capital has brought three CLO deals to market year to date.
The New York-based asset management firm priced three CLO transactions in 2015.
Issuer: | Sound Point CLO XIV, Ltd./Sound Point CLO XIV Inc.
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Amount: | $715 million
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Maturity: | Jan. 23, 2029
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Securities: | Fixed-rate, floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | Credit Suisse Securities (USA) LLC
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Manager: | Sound Point Capital Management LP
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Call feature: | Two years
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Settlement date: | Nov. 17
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Distribution: | Rule 144A
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Class A notes
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Amount: | $451.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 153 bps
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Rating: | Fitch: AAA
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Class B-1 notes
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Amount: | $55.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 200 bps
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Ratings: | Non-rated
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Class B-2 notes
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Amount: | $25 million
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Securities: | Fixed-rate notes
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Coupon: | 3.4195%
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Ratings: | Non-rated
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Class C notes
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Amount: | $42 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 265 bps
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Ratings: | Non-rated
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Class D notes
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Amount: | $35 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 385 bps
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Ratings: | Non-rated
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Class E notes
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Amount: | $35 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 665 bps
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Ratings: | Non-rated
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Equity
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Amount: | $71 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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