By Cristal Cody
Tupelo, Miss., Feb. 6 – THL Credit Advisors LLC priced $612 million of notes due April 15, 2029 in the new THL Credit Wind River 2017-1 CLO Ltd./THL Credit Wind River 2017-1 LLC transaction, according to a market source.
The CLO sold $390 million of class A senior secured floating-rate notes at Libor plus 134 basis points; $66 million of class B senior secured floating-rate notes at Libor plus 170 bps; $36 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 230 bps; $33 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 375 bps; $27 million of class E junior secured deferrable floating-rate notes at Libor plus 642 bps and $60 million of subordinated notes.
The deal was upsized from an initial size of $510.75 million.
Morgan Stanley & Co. LLC was the placement agent.
THL Credit Advisors will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds from the offering will be used to purchase a portfolio of about $500 million of mostly first-lien senior secured leveraged loans.
The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.
THL Credit Advisors was in the market in 2016 with two new CLOs and one refinanced transaction.
The alternative credit investment firm is based in Boston.
| Issuer: | THL Credit Wind River 2017-1 CLO Ltd./THL Credit Wind River 2017-1
|
| Amount: | $612 million
|
| Maturity: | April 15, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | THL Credit Advisors LLC
|
| Call feature: | Two years
|
| Pricing date: | Feb. 2
|
| Settlement date: | March 9
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $390 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 134 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $66 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $36 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $33 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $27 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 642 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $60 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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