By Cristal Cody
Tupelo, Miss., July 10 – 40|86 Advisors Inc. priced $362.5 million of notes due July 20, 2026 in the Silver Creek CLO, Ltd./Silver Creek CLO, LLC deal, according to an informed source.
The CLO sold $236.25 million of class A senior secured floating-rate notes (Aaa) at Libor plus 149 basis points; $31.5 million of class B senior secured floating-rate notes (Aa2) at Libor plus 190 bps; $16.1 million of class C deferrable floating-rate notes (A2) at Libor plus 280 bps; $20.65 million of class D deferrable floating-rate notes (Baa3) at Libor plus 365 bps; $15.4 million of class E deferrable floating-rate notes (Ba3) at Libor plus 515 bps and $42.6 million of subordinated notes.
Goldman Sachs & Co. arranged the transaction.
40|86 Advisors will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured loans and eligible investments.
The CLO has a two-year non-callable period and a four-year reinvestment period.
40/86 Advisors was last in the primary market in 2013 with the $413.25 million Cedar Creek CLO, Ltd./Cedar Creek CLO LLC deal.
Carmel, Ind.-based 40|86 Advisors is a subsidiary of CNO Financial Group, Inc.
| Issuer: | Silver Creek CLO, Ltd./Silver Creek CLO, LLC
|
| Amount: | $362.5 million
|
| Maturity: | July 20, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co.
|
| Manager: | 40|86 Advisors Inc.
|
| Call feature: | 2016
|
| Pricing date: | June 25
|
| Settlement date: | July 18
|
|
|
| Class A notes
|
| Amount: | $236.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 149 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $31.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $16.1 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $20.65 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $15.4 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 515 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity tranche
|
| Amount: | $42.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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