By Rebecca Melvin
New York, Aug. 26 – LCM Asset Management LLC sold $410.5 million of notes due 2026 in the LCM XVII LP/LCM XVII LLC CLO transaction, according to an informed source.
The CLO includes $225 million of class A floating-rate notes at Libor plus 145 basis points; $29 million of class B-1 floating-rate notes at Libor plus 205 bps; $24 million of class B-2 fixed-rate notes at 4.35%; $22 million of class C deferrable floating-rate notes at Libor plus 300 bps; $18 million of class D deferrable floating-rate notes at Libor plus 350 bps; $20 million of class E deferrable floating-rate notes at Libor plus 475 bps and $42.5 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
LCM Asset Management will manage the CLO, which is backed primarily by broadly syndicated senior secured corporate loans.
The CLO will have a two-year non-call period and a four-year reinvestment period.
LCM, a New York City-based asset management firm, has priced two CLO deals in 2014, including the $725.6 million LCM XVI LP/LCM XVI LLC transaction on May 12.
| Issuer: | LCM XVII LP/LCM XVII LLC
|
| Amount: | $410.5 million
|
| Maturity: | 2026
|
| Securities: | Floating-rate notes and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | LCM Asset Management LLC
|
| Call feature: | 2016
|
| Pricing date: | Aug. 22
|
| Expected closing: | October 2014
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $255 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | Standard & Poor's: AAA expected
|
|
|
| Class B-1 notes
|
| Amount: | $29 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | Standard & Poor's: AA expected
|
|
|
| Class B-2 notes
|
| Amount: | $24 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.35%
|
| Rating: | Standard & Poor's: AA expected
|
|
|
| Class C notes
|
| Amount: | $22 million
|
| Securities: | Senior deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Standard & Poor's: A expected
|
|
|
| Class D notes
|
| Amount: | $18 million
|
| Securities: | Senior deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Standard & Poor's: BBB expected
|
|
|
| Class E notes
|
| Amount: | $20 million
|
| Securities: | Senior deferrable floating-rate notes
|
| Coupon: | Libor plus 475 bps
|
| Rating: | Standard & Poor's: BB expected
|
|
|
| Subordinated notes
|
| Amount: | $42.5 million
|
| Ratings: | Non-rated
|
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