By Cristal Cody
Tupelo, Miss., July 8 – Symphony Asset Management LLC sold $553.85 million of notes in a second refinancing of the vintage 2012 California Street CLO IX, LP collateralized loan obligation transaction, according to a market source.
The reset CLO priced $6 million of class X-R2 floating-rate notes at Libor plus 70 basis points, $384 million of class A-R2 floating-rate notes at Libor plus 132 bps, $30 million of class B-1-R2 floating-rate notes at Libor plus 190 bps and $35.2 million of 4.05% class B-R-2 fixed-rate notes.
California Street CLO IX sold $37 million of class C-R2 deferrable floating-rate notes at Libor plus 280 bps, $20 million of class D-1-R2 deferrable floating-rate notes at Libor plus 370 bps, $12.5 million of class D-2-R2 deferrable floating-rate notes at Libor plus 410 bps, $23 million of class E-R2 deferrable floating-rate notes at Libor plus 695 bps, $4 million of class F deferrable floating-rate notes at Libor plus 852 bps and $2.15 million of limited partnership notes.
Barclays was the refinancing agent.
The maturity on the refinanced notes was extended to July 16, 2032 from Oct. 16, 2028.
Also, the reset CLO has a non-call period through July 5, 2021. The reinvestment period was extended to July 16, 2024 from Oct. 16, 2020.
California Street CLO IX, formerly known as Symphony CLO IX LP, was originally issued in May 2012. The CLO was first refinanced Oct. 17, 2016.
In the first $543 million refinancing, the CLO sold $366 million of class A-R floating-rate notes at Libor plus 145 bps; $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.
Proceeds from the second refinancing were used to redeem the outstanding notes.
The transaction is collateralized primarily by first-lien senior secured loans and eligible investments.
Symphony Asset Management has issued two new dollar-denominated CLOs and refinanced one vintage CLO year to date.
The asset management firm and subsidiary of Nuveen LLC is based in San Francisco.
| Issuer: | California Street CLO IX, LP
|
| Amount: | $553.85 million refinancing
|
| Maturity: | July 16, 2032
|
| Securities: | Fixed-rate, floating-rate and limited partnership notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Barclays
|
| Manager: | Symphony Asset Management LLC
|
| Call feature: | July 5, 2021
|
| Pricing date: | June 21
|
| Refinancing date: | July 5
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X-R2 notes
|
| Amount: | $6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 70 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class A-R2 notes
|
| Amount: | $384 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 132 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class B-1-R2 notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | S&P: AA
|
|
|
| Class B-2-R2 notes
|
| Amount: | $35.2 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.05%
|
| Ratings: | S&P: AA
|
|
|
| Class C-R2 notes
|
| Amount: | $37 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Ratings: | S&P: A
|
|
|
| Class D-1-R2 notes
|
| Amount: | $20 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class D-2-R2 notes
|
| Amount: | $12.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class E-R2 notes
|
| Amount: | $23 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 695 bps
|
| Ratings: | S&P: BB-
|
|
|
| Class F-R2 notes
|
| Amount: | $4 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 852 bps
|
| Ratings: | S&P: B-
|
|
|
| Equity
|
| Amount: | $2.15 million
|
| Securities: | Limited Partnership notes
|
| Ratings: | Non-rated
|
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