By Cristal Cody
Tupelo, Miss., Oct. 15 – StoneCastle Financial Corp. announced on Thursday that it priced and closed on a $250.5 million pooled bank credit securitization deal, the first to close since 2008.
Community Funding CLO, Ltd., a bank credit collateralized loan securitization, sold $205 million of 5.75% class A senior secured fixed-rate notes (A3 Expected//) and $45.5 million of preferred shares as collateral with an average 7% yield.
Citigroup Global Markets Inc. was the placement agent.
StoneCastle Investment Management, LLC is the CLO servicer.
StoneCastle said it invested $45.5 million in the preferred share tranche.
The proceeds from the deal were primarily used to fund direct capital investments into 35 community and regional banks from 24 states.
StoneCastle is a New York City-based closed-end management investment company.
| Issuer: | Community Funding CLO, Ltd
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| Amount: | $250.5 million
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| Securities: | Fixed-rate notes and preferred shares
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| Structure: | Bank credit CLO
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| Placement agent: | Citigroup Global Markets Inc.
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| Servicer: | StoneCastle Investment Management, LLC
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| Settlement date: | Oct. 15
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| Class A notes
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| Amount: | $205 million
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| Securities: | Senior secured fixed-rate notes
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| Coupon: | 5.75%
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| Ratings: | Moody’s: A3 Expected
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| Equity
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| Amount: | $45.5 million
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| Average yield: | 7%
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| Securities: | Preferred shares
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| Ratings: | Non-rated
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