By Cristal Cody
Tupelo, Miss., Sept. 25 – Start X CLO Ltd. priced $236.25 million of five-year credit-linked floating-rate notes at par in a Regulation S offering, according to a prospectus.
The notes priced at Libor plus 1,100 basis points to the designated maturity.
The notes have a scheduled maturity of March 23, 2019. The notes will be redeemed in full on the final maturity of March 23, 2020.
Standard Chartered Bank is the deal arranger and lead manager.
The notes will not be rated.
The deal is linked via a credit-default swap to a portfolio of reference obligations.
Standard Charted Bank will retain at least a 5% economic interest in each reference obligation, according to the prospectus. The 5% level is the required standard under European Union regulations governing investments in asset-backed securities by credit institutions.
The reference portfolio will have an initial outstanding amount of $3.5 billion and be made up of 1,535 obligations owed by 739 issuers.
Of the obligations, 86.64% by number have a balance of $5 million or less. By dollar amount, borrowers in China are the largest group, accounting for 15.65%, followed by Hong Kong at 15.37% and Singapore at 10.91%
The CLO has applied to have the notes listed on the Irish Stock Exchange.
Proceeds from the deal will be deposited into a principal collections account.
Standard Chartered Bank is a London-based banking and financial services company.
| Issuer: | Start X CLO Ltd.
|
| Amount: | $236.25 million
|
| Maturity: | March 23, 2020
|
| Securities: | Credit-linked floating-rate notes
|
| Structure: | CLO
|
| Coupon: | Libor plus 1,100 bps
|
| Price: | Par
|
| Placement agent: Standard Chartered Bank
|
| Manager: | Standard Chartered Bank
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 29
|
| Ratings: | Non-rated
|
| Distribution: | Regulation S
|
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