By Cristal Cody
Tupelo, Miss., May 24 – Saranac Advisory, Ltd. priced a $358.5 million refinancing and reset of Saranac CLO III Ltd./Saranac CLO III LLC, according to a market source and a notice of executed first supplemental indenture.
The CLO sold $161 million of class A-LR senior secured floating-rate notes at Libor plus 110 basis points. The notes will step up on the payment date in June 2020 to Libor plus 160 bps.
The CLO also sold $80 million of 4.088% class A-FR senior secured fixed-rate notes; $45 million of class B-R senior secured floating-rate notes at Libor plus 185 bps; $24.5 million of class C-R secured deferrable floating-rate notes at Libor plus 235 bps; $24.5 million of class D-R secured deferrable floating-rate notes at Libor plus 325 bps and $24 million of class E-R secured deferrable floating-rate notes at Libor plus 750 bps.
Jefferies LLC was the arranger.
The maturity on the refinanced notes was extended to June 24, 2030 from the original June 23, 2025 maturity.
Saranac originally issued the $399.75 million Saranac CLO III deal Aug. 28, 2014. The CLO had sold $164 million of class A-1 senior secured floating-rate notes at Libor plus 148 bps, $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 priced $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.
Proceeds were used to redeem the original notes.
Saranac is an affiliate of Canaras Capital Management, LLC, a New York City-based investment management firm.
| Issuer: | Saranac CLO III Ltd./Saranac CLO III LLC
|
| Amount: | $358.5 million refinancing
|
| Maturity: | June 24, 2030
|
| Securities: | Fixed- and floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Jefferies LLC
|
| Manager: | Saranac Advisory, Ltd.
|
| Settlement date: | May 15
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-LR notes
|
| Amount: | $161 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 110 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-FR notes
|
| Amount: | $80 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.088%
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B-R notes
|
| Amount: | $45 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $24.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
|
| Amount: | $24 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-R notes
|
| Amount: | $24 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 750 bps
|
| Rating: | Moody’s: Ba3
|
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