By Cristal Cody
Tupelo, Miss., Dec. 15 – Cutwater Investor Services Corp. priced $411.5 million of notes due Jan. 15, 2027 in a collateralized loan obligation transaction, according to a market source.
Cutwater 2014-II, Ltd./Cutwater 2014-II, LLC sold $258.1 million of class A-1 senior secured floating-rate notes at Libor plus 157 basis points; $38.8 million of class A-2 senior secured floating-rate notes at Libor plus 230 bps; $25.6 million of class B senior secured deferrable floating-rate notes at Libor plus 315 bps; $23.3 million of class C senior secured deferrable floating-rate notes at Libor plus 440 bps and $22.8 million of class D secured deferrable floating-rate notes at Libor plus 585 bps.
The deal included $20.1 million of class A subordinated notes and $22.8 million of class B subordinated notes as equity tranches.
Natixis Securities Americas LLC was the placement agent.
Cutwater Investor Services will manage the CLO.
The CLO is non-callable until Jan. 14, 2017. The reinvestment period ends Jan. 15, 2019.
The offering is collateralized primarily by first-lien senior secured loans.
Proceeds from the deal will be used to purchase a portfolio of about $400 million of leveraged loans.
Cutwater Investor Services was previously in the primary market with the $415.4 million Cutwater 2014-I, Ltd./Cutwater 2014-I, LLC deal on July 8.
The investment management firm is based in New York City.
| Issuer: | Cutwater 2014-II, Ltd./Cutwater 2014-II, LLC
|
| Amount: | $411.5 million
|
| Maturity: | Jan. 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Natixis Securities Americas LLC
|
| Manager: | Cutwater Investor Services Corp.
|
| Call feature: | Jan. 14, 2017
|
| Pricing date: | Dec. 11
|
| Settlement date: | Jan. 15
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $258.1 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 157 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $38.8 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $25.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 315 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $23.3 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 440 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $22.8 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 585 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class A equity
|
| Amount: | $20.1 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
| Class B equity
|
| Amount: | $22.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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