By Cristal Cody
Tupelo, Miss., Aug. 7 – Steele Creek Investment Management LLC priced $405.19 million of notes due July 15, 2032 in the manager’s second broadly syndicated collateralized loan obligation transaction of the year, according to a market source.
Steele Creek CLO 2019-2 Ltd./Steele Creek CLO 2019-2, LLC sold $215 million of class A-1 floating-rate notes (/AAA/AAA) at par to yield Libor plus 136 basis points and $41 million of 3.23% class A-2 fixed-rate notes (/AAA/AAA) at 99.997.
The CLO priced $44 million of class B floating-rate notes (/AA/) at par to yield Libor plus 225 bps; $26 million of class C deferrable floating-rate notes (/A/) at par to yield Libor plus 325 bps; $24 million of class D deferrable floating-rate notes (/BBB-/) at 98.939 and a coupon of Libor plus 435 bps; $15 million of class E deferrable floating-rate notes (/BB-/) with a coupon of Libor plus 770 bps at 96.928 and $40.19 million of subordinated notes.
Wells Fargo Securities, LLC was the placement agent.
Steele Creek Investment Management will manage the CLO, which has a two-year non-call period and a five-year reinvestment period.
The CLO is collateralized by first lien senior secured loans.
Steele Creek Investment Management has priced two new CLOs year to date.
The CLO manager brought two new CLOs to the primary market in 2018.
Steele Creek Investment Management is a Charlotte, N.C.-based asset management firm and subsidiary of global advisory firm Moelis & Co. LLC.
| Issuer: | Steele Creek CLO 2019-2 Ltd./Steele Creek CLO 2019-2, LLC
|
| Amount: | $405.19 million
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Maturity: | July 15, 2032
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | Steele Creek Investment Management LLC
|
| Call feature: | Two years
|
| Pricing date: | July 26
|
| Settlement date: | Aug. 30
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $215 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 136 bps
|
| Price: | Par
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $41 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.23%
|
| Price: | 99.997
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $44 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Price: | Par
|
| Ratings: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $26 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Price: | Par
|
| Ratings: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 435 bps
|
| Price: | 98.939
|
| Ratings: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $15 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 770 bps
|
| Price: | 96.928
|
| Ratings: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $40.19 million
|
| Securities: | Subordinated notes
|
|
|
| Ratings: | Non-rated
|
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