By Cristal Cody
Eureka Springs, Ark., Jan. 19 – Sound Point Capital Management LP sold $489.5 million of notes due April 18, 2026 in a refinancing of the Sound Point CLO V, Ltd./Sound Point CLO V LLC transaction, according to a notice of executive supplemental indenture on Wednesday and market sources.
The CLO priced $390 million of class A-R senior secured floating-rate notes at Libor plus 130 basis points; $67 million of class B-R senior secured floating-rate notes at Libor plus 165 bps and $32.5 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 240 bps.
Credit Suisse Securities (USA) LLC was the refinancing agent.
Sound Point Capital will continue to manage the CLO.
The non-call period on the CLO ended in April 2016, while the reinvestment period ends in April 2018.
Proceeds from the refinancing will be used to redeem the original class A, B-1, B-2 and C notes.
The remaining tranches in the offering originally issued on March 31, 2014 will remain outstanding.
The transaction is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.
Sound Point Capital, a New York-based asset management firm, priced three CLO deals in 2016.
| Issuer: | Sound Point CLO V, Ltd./Sound Point CLO V Inc.
|
| Amount: | $489.5 million
|
| Maturity: | April 18, 2026
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | Sound Point Capital Management LP
|
| Refinancing date: | Jan. 18
|
|
|
| Class A-R notes
|
| Amount: | $390 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $67 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $32.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Moody’s: A2
|
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