By Cristal Cody
Eureka Springs, Ark., March 22 – Symphony Asset Management LLC priced $512 million of notes due April 15, 2028 in its first broadly syndicated collateralized loan obligation transaction of the year, according to a market source.
Symphony CLO XVII Ltd./Symphony CLO XVII LLC sold $280.75 million of class A-1 senior secured floating-rate notes at Libor plus 150 basis points; $40 million of 2.85% class A-2 senior secured fixed-rate notes; $50.75 million of class B senior floating-rate notes at Libor plus 225 bps; $32 million of class C deferrable mezzanine floating-rate notes at Libor plus 335 bps; a $31.5 million slice of class D deferrable mezzanine floating-rate notes at Libor plus 480 bps; $25 million of class E deferrable mezzanine floating-rate notes at Libor plus 740 bps and $52 million of subordinated notes.
Goldman Sachs & Co. was the placement agent.
Symphony Asset Management will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is backed primarily by broadly syndicated first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of $500 million of mostly senior secured leveraged loans.
Symphony Asset Management priced one CLO offering and refinanced one vintage CLO deal in 2015.
The asset management firm is based in San Francisco.
| Issuer: | Symphony CLO XVII Ltd./Symphony CLO XVII LLC
|
| Amount: | $512 million
|
| Maturity: | April 15, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co.
|
| Manager: | Symphony Asset Management LLC
|
| Call feature: | 2018
|
| Pricing date: | March 9
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $280.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $40 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.85%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $50.75 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $32 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 335 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $31.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 480 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 740 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $52 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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