By Cristal Cody
Tupelo, Miss., July 31 – Steele Creek Investment Management LLC priced $406.3 million of notes due Aug. 18, 2031 in a new collateralized loan obligation transaction, according to a market source.
Steele Creek CLO 2018-2 Ltd./Steele Creek CLO 2018-2, LLC sold $256 million of class A floating-rate notes at a discount margin of Libor plus 124 basis points; $46 million of class B floating-rate notes at a discount margin of Libor plus 191 bps; $22 million of class C floating-rate notes at a discount margin of Libor plus 230 bps; $25 million of class D floating-rate notes at a discount margin of Libor plus 340 bps; $19 million of class E floating-rate notes at a discount margin of Libor plus 620 bps and $38.3 million of subordinated notes.
Barclays was the placement agent.
Steele Creek Investment Management will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The issue is collateralized entirely by broadly syndicated first lien senior secured loans.
Steele Creek Investment Management has priced two new CLOs year to date.
The company priced one CLO offering in 2017.
The Charlotte, N.C.-based asset management firm is a subsidiary of global advisory firm Moelis & Co. LLC.
| Issuer: | Steele Creek CLO 2018-2 Ltd./Steele Creek CLO 2018-2, LLC
|
| Amount: | $406.3 million
|
| Maturity: | Aug. 18, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Barclays
|
| Manager: | Steele Creek Investment Management LLC
|
| Call feature: | Two years
|
| Pricing date: | July 27
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A notes
|
| Amount: | $256 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 124 bps
|
| Ratings: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $46 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 191 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
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| Amount: | $22 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 230 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
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| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 340 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
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| Amount: | $19 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 620 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $38.3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
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