By Cristal Cody
Tupelo, Miss., Feb. 13 – Sound Point Capital Management LP sold $508.8 million of notes due Jan. 20, 2032 in the new Sound Point CLO XXII, Ltd. transaction, according to a market source.
The CLO priced $305 million of class A floating-rate notes at Libor plus 137 basis points, $55 million of class B-1 floating-rate notes at Libor plus 195 bps and $20 million of 4.58% class B-2 fixed-rate notes.
In the other tranches, the CLO priced $27.75 million of class C floating-rate notes at Libor plus 290 bps; $28.75 million of class D floating-rate notes at Libor plus 390 bps; $23.5 million of class E floating-rate notes at Libor plus 630 bps and $48.8 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The deal is collateralized mostly by broadly syndicated first-lien senior secured corporate loans.
Sound Point Capital is an asset management firm based in New York.
| Issuer: | Sound Point CLO XXII, Ltd.
|
| Amount: | $508.8 million
|
| Maturity: | Jan. 20, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Two years
|
| Settlement date: | Feb. 21
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A notes
|
| Amount: | $305 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 137 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $55 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $20 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.58%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $27.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $28.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $23.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 630 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $48.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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