By Cristal Cody
Tupelo, Miss., Oct. 20 – MCF Capital Management LLC priced $405.96 million of notes due Oct. 15, 2025 in a collateralized loan obligation offering, according to a market source on Monday.
MCF CLO IV LLC sold $228.5 million of class A floating-rate notes (/AAA/AAA) at Libor plus 170 basis points at par; $34.25 million of class B floating-rate notes (/AA/) at Libor plus 245 bps at 98.46; $28.5 million of class C deferrable floating-rate notes (/A/) at Libor plus 330 bps at 97.23; $28.5 million of class D deferrable floating-rate notes (/BBB-/) at Libor plus 400 bps 95.19; $28.5 million of class E deferrable floating-rate notes (/BB/) at Libor plus 590 bps at 90.37 and $57.71 million of interest notes.
Wells Fargo Securities LLC was the placement agent.
MCF Capital Management will manage the CLO portfolio.
The CLO is non-callable until Oct. 15, 2016. The reinvestment period ends Oct. 15, 2018.
The offering is backed primarily by middle-market senior secured loans.
Proceeds from the deal will be used to purchase a portfolio of about $400 million of senior secured middle-market corporate loans.
MCF Capital Management, a middle market loan firm based in Laguna Hills, Calif., priced three CLO transactions in 2013.
| Issuer: | MCF CLO IV LLC
|
| Amount: | $405.96 million
|
| Maturity: | Oct. 15, 2025
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | MCF Capital Management LLC
|
| Call feature: | Oct. 15, 2016
|
| Pricing date: | Oct. 15
|
| Settlement date: | Nov. 13
|
|
|
| Class A notes
|
| Amount: | $228.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Price: | Par
|
| Ratings: | Standard & Poor’s: AAA
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $34.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 245 bps
|
| Price: | 98.46
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $28.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Price: | 97.23
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $28.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Price: | 95.19
|
| Rating: | Standard & Poor’s: BBB-
|
|
|
| Class E notes
|
| Amount: | $28.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 590 bps
|
| Price: | 90.37
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Equity tranche
|
| Amount: | $57.71 million
|
| Securities: | Interest notes
|
| Rating: | Non-rated
|
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