By Cristal Cody
Tupelo, Miss., May 5 – Sound Point Capital Management LP refinanced $492 million of notes due Aug. 17, 2026 from the vintage 2014 Sound Point CLO VI, Ltd./Sound Point CLO VI, Inc. transaction, according to a notice of executed second supplemental indenture.
The CLO sold $360 million of class A-1-R senior secured floating-rate notes at Libor plus 114 basis points, $30 million of class A-2-R senior secured deferrable floating-rate notes at Libor plus 114 bps, $69 million of class B-R senior secured floating-rate notes at Libor plus 155 bps and $33 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 227 bps.
Credit Suisse Securities (USA) LLC arranged the deal.
Sound Point Capital will continue to manage the CLO.
In the original transaction priced on July 23, 2014, the CLO sold $4 million of class X senior secured floating-rate notes at Libor plus 100 bps at par; $360 million of class A-1 senior secured floating-rate notes at Libor plus 136 bps at 99.25; $30 million of 3.44% class A-2 senior secured fixed-rate notes at par; $69 million of class B senior secured floating-rate notes at Libor plus 198 bps at 98; $33 million of class C deferrable floating-rate notes at Libor plus 293 bps at 97; $33 million of class D deferrable floating-rate notes at Libor plus 335 bps at 92.5; $27 million of class E deferrable floating-rate notes at Libor plus 505 bps at 89.75; $15.75 million of class F deferrable floating-rate notes at Libor plus 540 bps at 84 and $60 million of subordinated notes.
Proceeds from the refinancing were used to redeem the original class A-1, A-2, B and C notes.
The deal is collateralized primarily by broadly syndicated senior secured corporate loans.
Sound Point Capital has refinanced seven vintage CLOs year to date.
The New York-based asset management firm priced three new CLO deals in 2016.
| Issuer: | Sound Point CLO VI, Ltd./Sound Point CLO VI, Inc.
|
| Amount: | $492 million refinancing
|
| Maturity: | Aug. 17, 2026
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | Sound Point Capital Management LP
|
| Settlement date: | April 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-R notes
|
| Amount: | $360 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 114 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $30 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 114 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $69 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $33 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 227 bps
|
| Rating: | Moody’s: A2
|
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