By Cristal Cody
Tupelo, Miss., June 5 – A New York Life Insurance Co. affiliate priced $412.5 million of notes due July 17, 2026 in a collateralized loan obligation offering on Thursday, according to market sources.
Flatiron CLO 2014-1 Ltd./ Flatiron CLO 2014-1 LLC sold $256 million of class A-1 floating-rate notes (//AAA) at Libor plus 140 basis points; $45.5 million of class A-2 floating-rate notes at Libor plus 190 bps; $21 million of class B floating-rate notes at Libor plus 285 bps; $25.5 million of class C floating-rate notes at Libor plus 330 bps; $18.5 million of class D floating-rate notes at Libor plus 500 bps and $46 million of subordinated notes.
BofA Merrill Lynch arranged the transaction.
NYL Investors LLC will manage the CLO.
The deal is backed primarily by senior secured corporate loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to repay interim financing and to purchase assets to reach a target portfolio of about $400 million of leveraged loans.
New York Life Insurance affiliate New York Life Investment Management LLC brought the $409.75 million Flatiron CLO 2013-1 Ltd./ Flatiron CLO 2013-1 LLC deal in November.
Issuer: | Flatiron CLO 2014-1 Ltd./ Flatiron CLO 2014-1 LLC
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Amount: | $412.5 million
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Maturity: | July 17, 2026
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Securities: | Floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | BofA Merrill Lynch
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Manager: | NYL Investors LLC
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Call feature: | July 2016
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Pricing date: | June 5
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Settlement date: | July 15
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Class A-1 notes
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Amount: | $256 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 140 bps
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Ratings: | Fitch: AAA
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Class A-2 notes
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Amount: | $45.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 190 bps
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Ratings: | Non-rated
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Class B notes
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Amount: | $21 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 285 bps
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Ratings: | Non-rated
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Class C notes
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Amount: | $25.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 330 bps
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Ratings: | Non-rated
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Class D notes
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Amount: | $18.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 500 bps
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Ratings: | Non-rated
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Equity tranche
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Amount: | $46 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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