By Rebecca Melvin
New York, Sept. 25 – Sound Harbor Partners priced a $456.95 million collateralized loan obligation in its debut transaction, according to an informed source.
Sound Harbor Loan Fund 2014-1 priced $281.2 million of class A-1 floating-rate notes (Aaa/AAA/) at Libor plus 150 basis points; $60.6 million of class A-2 floating-rate notes (Aa2//) at Libor plus 215 bps; $21.1 million of class B floating-rate notes (A2//) at Libor plus 290 bps; $28.4 million of class C floating-rate notes (Baa3//) at Libor plus 476 bps; $22.8 million of class D floating-rate notes (Ba3) at Libor plus 700 bps and an equity tranche of $42.85 million of subordinated notes.
J.P. Morgan Securities LLC was the arranger of the deal.
The CLO has a two-year non-call period until October 2016, a four-year reinvestment period to October 2018 and a 12-year legal final maturity in October 2026.
Founded in 2009, Sound Harbor provides private credit to U.S. companies. It formed a joint partnership with Macquarie Credit Investment Management last year to launch a series of CLO funds.
| Issuer: | Sound Harbor Loan Fund 2014-1
|
| Amount: | $456.95 million
|
| Maturity: | October 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Arranger: | J.P. Morgan Securities LLC
|
| Manager: | Sound Harbor Partners
|
| Call feature: | October 2016
|
| Reinvestment period: | October 2018
|
|
|
| Class A-1 notes
|
| Amount: | $281.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $60.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $21.1 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $28.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 476 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $22.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Rating: | Moody’s: Ba3
|
|
|
|
|
| Equity tranche
|
| Amount: | $42.85 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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