Sound Point Capital Management readies $524.88 million CLO offering

By Cristal Cody

Tupelo, Miss., July 18 – Sound Point Capital Management LP intends to bring $524.88 million of notes due Aug. 18, 2026 in a new collateralized loan obligation deal, according to a market source.

Sound Point CLO VI, Ltd./Sound Point CLO VI Inc. plans to offer $3 million of class X floating-rate notes (//AAA); $305 million of class A-1 floating-rate notes (//AAA); $20 million of class A-2 fixed-rate notes (//AAA); $52.5 million of class B-1 floating-rate notes; $5 million of class B-2 fixed-rate notes; $27.5 million of class C floating-rate notes; $27.5 million of class D floating-rate notes; $22.5 million of class E floating-rate notes and $13.13 million of class F floating-rate notes.

The deal includes $48.75 million of subordinated notes in the equity tranche.

Morgan Stanley & Co. LLC is the placement agent.

Sound Point Capital Management will manage the CLO.

The vehicle has a two-year non-call period and a four-year reinvestment period.

The CLO is backed primarily by first lien senior secured loans.

Proceeds from the offering will be used to purchase a $500 million portfolio of mostly leveraged loans.

Sound Point Capital Management was last in the market in March with the $628 million Sound Point CLO V, Ltd./Sound Point CLO V Inc. deal.

The New York City-based asset management firm priced three CLO transactions in 2013.

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