By Cristal Cody
Tupelo, Miss., Nov. 4 – Telos Asset Management LLC priced $359.9 million of notes due Nov. 30, 2026 in a collateralized loan obligation transaction, according to a market source.
Telos CLO 2014-6, Ltd./Telos CLO 2014-6 LLC sold $161.5 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 basis points; $60 million of 3.46% class A-2 fixed-rate notes (Aaa/AAA/); $8 million of class B-1 senior secured floating-rate notes (/AA/) at Libor plus 210 bps; $34 million of 4.78% class B-2 senior secured fixed-rate notes; $22 million of class C deferrable floating-rate notes (/A/) at Libor plus 300 bps; $20.5 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 390 bps; $16.5 million of class E deferrable floating-rate notes at Libor plus 500 bps and $37.4 million of subordinated notes.
BNP Paribas Securities Corp. arranged the offering.
Telos Asset Management will manage the CLO.
The CLO is non-callable until Nov. 30, 2016. The reinvestment period ends Nov. 30, 2018.
The deal is collateralized mainly by broadly syndicated senior secured loans.
Telos Asset Management was last in the primary market in April with the $412.35 million Telos CLO 2014-5, Ltd./Telos CLO 2014-5 LLC deal.
The asset management company, a subsidiary of New York-based Tiptree Financial Inc., priced two CLO transactions in 2013.
| Issuer: | Telos CLO 2014-6, Ltd./Telos CLO 2014-6 LLC
|
| Amount: | $359.9 million
|
| Maturity: | Nov. 30, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | Telos Asset Management LLC
|
| Call feature: | Nov. 30, 2016
|
| Pricing date: | Oct. 31
|
| Settlement date: | Dec. 3
|
|
|
| Class A-1 notes
|
| Amount: | $161.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $60 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.46%
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $8 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B-2 notes
|
| Amount: | $34 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.78%
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $20.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $16.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Equity tranche
|
| Amount: | $37.4 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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