By Cristal Cody
Tupelo, Miss., July 25 – Par-Four Investment Management, LLC priced $462.67 million of notes due July 20, 2026 in a collateralized loan obligation deal, according to a market source.
Tralee CLO III, Ltd./Tralee CLO III, LLC sold $150 million of class A-1 senior secured floating-rate notes (Aaa//) at Libor plus 159 basis points and $128 million of class A-2 senior secured floating-rate notes (Aaa//) at Libor plus 135 bps.
The CLO priced $64 million of class B senior secured floating-rate notes (Aa2//) at Libor plus 210 bps; $29 million of class C deferrable floating-rate notes (A2//) at Libor plus 300 bps; $10 million of class D-1 deferrable floating-rate notes (Baa3//) at Libor plus 375 bps; $14 million of class D-2 deferrable floating-rate notes (Baa3//) at Libor plus 490 bps and $19.75 million of class E deferrable floating-rate notes (Ba2//) at Libor plus 700 bps.
The transaction included $47.92 million of subordinated notes in the equity tranche.
Deutsche Bank Securities Inc. was the placement agent.
Par-Four Investment will manage the CLO, which is backed primarily by first-lien senior secured loans and eligible investments.
The CLO has a two-year non-call period and a four-year reinvestment period.
The Woodcliffe Lake, N.J.-based firm was last in the CLO primary market in 2013 with the $416 million Tralee CLO II, Ltd. transaction.
| Issuer: | Tralee CLO III, Ltd./Tralee CLO III, LLC
|
| Amount: | $462.67 million
|
| Maturity: | July 20, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | Par-Four Investment Management, LLC
|
| Call feature: | 2016
|
| Pricing date: | July 9
|
| Settlement date: | July 29
|
|
|
| Class A-1 notes
|
| Amount: | $150 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 159 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2 notes
|
| Amount: | $128 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $64 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $29 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-1 notes
|
| Amount: | $10 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-2 notes
|
| Amount: | $14 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 490 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $19.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Rating: | Moody’s: Ba2
|
|
|
| Equity tranche
|
| Amount: | $47.92 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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