By Cristal Cody
Tupelo, Miss., Dec. 9 – Tall Tree Investment Management, LLC priced $404.8 million of notes due Jan. 25, 2024 in a collateralized loan obligation transaction, according to a market source.
Lockwood Grove CLO, Ltd./Lockwood Grove CLO, Corp. sold $255 million of class A-1 senior secured floating-rate notes at Libor plus 137 basis points; $2.5 million of class A-X senior secured floating-rate notes at Libor plus 100 bps; $47.8 million of class B senior secured floating-rate notes at Libor plus 218 bps; $23.8 million of class C senior secured deferrable floating-rate notes at Libor plus 364 bps; $21 million of class D senior secured deferrable floating-rate notes at Libor plus 483 bps; $20 million of class E senior secured deferrable floating-rate notes at Libor plus 656 bps and $34.7 million of subordinated notes.
Jefferies LLC arranged the deal.
Tall Tree Investment will manage the CLO, which is collateralized primarily by first-lien senior secured loans and eligible investments.
The non-call period and the reinvestment period on the CLO are set to end Jan. 25, 2016.
Tall Tree Investment previously priced the $413.1 million Nelder Grove CLO 2014-1 Ltd. deal on July 18 and the $408.5 million Tuolumne Grove CLO 2014-1 Ltd. transaction on Feb. 28, 2014.
The investment management firm is based in Chicago.
| Issuer: | Lockwood Grove CLO, Ltd./Lockwood Grove CLO, Corp.
|
| Amount: | $404.8 million
|
| Maturity: | Jan. 25, 2024
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Jefferies LLC
|
| Manager: | Tall Tree Investment Management, LLC
|
| Call feature: | Jan. 25, 2016
|
| Pricing date: | Nov. 25
|
| Settlement date: | Dec. 23
|
|
|
| Class A-1 notes
|
| Amount: | $255 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 137 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-X notes
|
| Amount: | $2.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $47.8 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 218 bps
|
| Price: | 99.625
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $23.8 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 364 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2
|
|
|
| Class D notes
|
| Amount: | $21 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 483 bps
|
| Price: | 99
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 656 bps
|
| Price: | 99
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity tranche
|
| Amount: | $34.7 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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