By Cristal Cody
Tupelo, Miss., Aug. 11 – Saranac Advisory Ltd. sold $399.75 million of notes due June 23, 2025 in a collateralized loan obligation deal, according to a market source.
Saranac CLO III Ltd./Saranac CLO III LLC priced $164 million of class A-1 senior secured floating-rate notes at Libor plus 148 basis points, $74 million of class A-2A senior secured floating-rate notes at Libor plus 143 bps and $11 million of class A-2B senior secured floating-rate notes at Libor plus 170 bps.
The CLO also sold $31 million of class B senior secured floating-rate notes at Libor plus 205 bps; $31 million of class C deferrable floating-rate notes at Libor plus 275 bps; $23 million of class D deferrable floating-rate notes at Libor plus 365 bps; $24.5 million of class E deferrable floating-rate notes at Libor plus 515 bps; $10 million of class F floating-rate notes at Libor plus 850 bps and $31.25 million of income notes.
Jefferies LLC arranged the transaction.
Saranac Advisory is the designated CLO manager; however, all management duties will be delegated to New York-based Canaras Capital Management, LLC.
The CLO has a two-year non-call period and a four-year reinvestment period.
The portfolio is backed primarily by first-lien senior secured loans and eligible investments.
Saranac Advisory is a Jersey Island firm founded in 2013.
| Issuer: | Saranac CLO III Ltd./Saranac CLO III LLC
|
| Amount: | $399.75 million
|
| Maturity: | June 23, 2025
|
| Securities: | Floating-rate and income notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Jefferies LLC
|
| Managers: | Saranac Advisory Ltd./Canaras Capital Management, LLC
|
| Call feature: | 2016
|
| Pricing date: | July 22
|
| Settlement date: | Aug. 28
|
|
|
| Class A-1 notes
|
| Amount: | $164 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 148 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2 notes
|
| Amount: | $74 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 143 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2B notes
|
| Amount: | $11 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $31 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $31 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $23 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $24.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 515 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
|
| Amount: | $10 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 850 bps
|
| Ratings: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $31.25 million
|
| Securities: | Income notes
|
| Ratings: | Non-rated
|
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