By Cristal Cody
Eureka Springs, Ark., Oct. 18 – Symphony Asset Management LLC refinanced $543 million of notes in the California Street CLO IX LP (formerly known as Symphony CLO IX LP) collateralized loan obligation transaction, according to a market source.
The CLO sold $366 million of class A-R floating-rate notes at Libor plus 145 basis points; $75 million of class B-R floating-rate notes at Libor plus 185 bps; $43.5 million of class C-R floating-rate notes at Libor plus 245 bps; $30.75 million of class D-R floating-rate notes at Libor plus 396 bps and $27.75 million of class E-R floating-rate notes at Libor plus 718 bps.
Morgan Stanley & Co. LLC was the refinancing agent.
Symphony Asset Management will continue to manage the CLO, which originally priced in 2012.
The maturity on the refinanced notes was extended to Oct. 16, 2028 from April 15, 2022.
Also, the non-call period was extended by two years to Oct. 16, 2018 and the reinvestment period extended by four years to Oct. 16, 2020.
In addition, the refinanced deal was structured to comply with the Volcker Rule to prohibit bonds, senior secured notes and other non-loan assets in the portfolio.
Proceeds from the refinancing were used to redeem the existing class A, B, C, D and E notes on Monday.
The CLO manager has priced two CLO deals and refinanced one vintage CLO year to date.
The San Francisco-based asset management firm sold one CLO and refinanced one vintage CLO in 2015.
| Issuer: | California Street CLO IX LP
|
| Amount: | $543 million refinancing
|
| Maturity: | Oct. 16, 2028
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Symphony Asset Management LLC
|
| Call feature: | Oct. 16, 2018
|
| Refinancing date: | Oct. 17
|
| Distribution: | Rule 144A
|
|
|
| Class A-R notes
|
| Amount: | $366 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $43.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 245 bps
|
| Ratings: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $30.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 396 bps
|
| Rating: | S&P: BBB
|
|
|
| Class E-R notes
|
| Amount: | $27.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 718 bps
|
| Rating: | S&P: BB-
|
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