By Cristal Cody
Tupelo, Miss., July 9 – Arrowpoint Asset Management LLC sold $150 million of notes due 2026 in the Peaks CLO 1 Ltd./Peaks CLO 1 LLC transaction, according to a market source.
The CLO priced $72.15 million of class A floating-rate notes (/AAA/) at Libor plus 175 basis points; $16 million of class B floating-rate notes (/AA/) at Libor plus 280 bps; $17.25 million of class C deferrable floating-rate notes (/A/) at Libor plus 350 bps; $9.75 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 450 bps; $8.5 million of class E deferrable floating-rate notes (/BB/) at Libor plus 550 bps and $4.1 million of class F deferrable floating-rate notes (/B/) at Libor plus 660 bps.
The deal included $22.25 million of subordinated notes in the equity tranche.
Guggenheim Securities LLC was the placement agent.
Arrowpoint Asset Management will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Denver-based Arrowpoint Asset Management, the investment adviser arm of Meridian Funds, was last in the primary market in February with the $460.25 million Arrowpoint CLO 2014-2 Ltd./Arrowpoint CLO 2014-2 Corp. deal.
| Issuer: | Peaks CLO 1 Ltd./Peaks CLO 1 LLC
|
| Amount: | $150 million
|
| Maturity: | 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Guggenheim Securities LLC
|
| Manager: | Arrowpoint Asset Management LLC
|
| Call feature: | 2016
|
| Pricing date: | June 27
|
|
|
| Class A notes
|
| Amount: | $72.15 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $16 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $17.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $9.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 450 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $8.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Class F notes
|
| Amount: | $4.1 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $22.25 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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