By Cristal Cody
Tupelo, Miss., Jan. 24 – Redding Ridge Asset Management, LLC priced $1,552,350,000 of notes due January 2030 in a collateralized loan obligation transaction, according to a market source.
The RR 3 Ltd./RR 3 LLC CLO sold $916 million of class A-1-R2 floating-rate notes at Libor plus 109 basis points; $155 million of class A-2-R2 floating-rate notes at Libor plus 140 bps; $150 million of class B-R2 deferrable floating-rate notes at Libor plus 180 bps; $75 million of class C-R2 deferrable floating-rate notes at Libor plus 250 bps; $68 million of class D-R2 deferrable floating-rate notes at Libor plus 540 bps and $188.35 million of preferred shares.
BNP Paribas Securities Corp. was the refinancing placement agent.
Redding Ridge will manage the CLO.
The deal is a refinancing and reset of the ALM XIV, Ltd. transaction that was originally priced and managed by Apollo Credit Management (CLO) LLC.
Apollo Credit Management refinanced $1,177,160,000 of notes from the vintage 2014 CLO on April 5, 2017.
ALM XIV sold $930 million of class A-1-R floating-rate notes at par to yield Libor plus 115 bps, $163.23 million of class A-2-R floating-rate notes at par to yield Libor plus 155 bps and $83.93 million of class B-R floating-rate notes at par to yield Libor plus 210 bps.
In the original transaction priced on June 6, 2014, ALM XIV sold $930 million of class A-1 senior secured floating-rate notes at Libor plus 143 bps; $163,225,000 of class A-2 senior secured floating-rate notes at Libor plus 210 bps; $83,925,000 of class B senior secured deferrable floating-rate notes at Libor plus 295 bps; $107.5 million of class C senior secured deferrable floating-rate notes at Libor plus 345 bps; $100.1 million of class D secured deferrable floating-rate notes at Libor plus 485 bps and $157.35 million of preferred shares.
The reset RR 3 CLO will have a two-year non-call period and a five-year reinvestment period.
The notes are collateralized primarily by broadly syndicated first-lien senior secured loans.
Proceeds will be used to redeem the refinanced CLO notes on Jan. 29.
In 2017, Redding Ridge Asset Management priced two CLOs.
The New York City-based asset management company was established in 2016 by Apollo Global Management, LLC.
| Issuer: | RR 3 Ltd./RR 3 LLC
|
| Amount: | $1,552,350,000 refinancing
|
| Maturity: | January 2030
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BNP Paribas Securities Corp.
|
| Manager: | Redding Ridge Asset Management, LLC
|
| Call feature: | Two years
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 29
|
|
|
| Class A-1-R2 notes
|
| Amount: | $916 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 109 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2-R2 notes
|
| Amount: | $155 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R-2 notes
|
| Amount: | $150 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R-2 notes
|
| Amount: | $75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R2 notes
|
| Amount: | $68 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 540 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $188.35 million
|
| Securities: | Preferred shares
|
| Ratings: | Non-rated
|
|
|
|
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