Fortress, Flagship price CLOs; secondary sees some mezzanine bids wanted in competition

By Rebecca Melvin

New York, Sept. 26 – Terms emerged Friday for two new collateralized loan obligations, including Fortress Investment Group LLC’s $600 million of notes due October 2026 and Deutsche Investment Management Americas Inc.’s $411.56 million of notes in Flagship due 2027, according to informed sources.

Fortress Credit Opportunities V CLO Ltd./Fortress Credit Opportunities V CLO LLC priced $86 million of class A-1R floating-rate revolving notes (/AAA/) at Libor plus 190 basis points, $82 million of class A-1T floating-rate notes (/AAA/) at Libor plus 190 bps and $90 million of class A-1F fixed-rate revolving notes (/AAA/) to yield 3.85% and $18 million of 4.4% class A-2 fixed-rate revolving notes (/AA/).

Fortress also priced $66 million of class B floating-rate notes (/AA/) at Libor plus 265 bps lower in the capital structure; as well as $48 million of floating-rate deferrable notes (/A/) at Libor plus 355 bps; $42 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 450 bps; $18 million of class E deferrable floating-rate notes (/BBB/) at Libor plus 490 bps; $18 million of class F deferrable floating-rate notes (/BB/) at Libor plus 675 bps; and $132 million of subordinated notes in an equity tranche.

Separately, at the top of the capital structure, Flagship VIII Ltd./Flagship VIII LLC priced $251 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 154 bps as part of its $411.56 million CLO.

In the broader market, there were some mezzanine bid wanted in competition lists.

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