By Cristal Cody
Tupelo, Miss., Nov. 4 – Marathon Asset Management LP sold $460.75 million of notes due Nov. 15, 2025 in a collateralized loan obligation offering, according to a market source.
The deal was upsized from $432.35 million.
Marathon CLO VII Ltd./Marathon CLO VII LLC priced $272.65 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 basis points at the top of the structure.
The CLO also priced $54.95 million of class A-2 senior secured floating-rate notes (/AA/) at Libor plus 265 bps; $36.4 million of class B senior secured deferrable floating-rate notes (/A/) at Libor plus 350 bps; $28.6 million of class C senior secured deferrable floating-rate notes (/BBB-/) at Libor plus 380 bps; $18.65 million of class D senior secured deferrable floating-rate notes (/BB-/) at Libor plus 540 bps and $49.5 million of subordinated notes.
J.P. Morgan Securities LLC was the placement agent.
Marathon Asset Management will manage the CLO.
The notes are non-callable until Nov. 15, 2016. The reinvestment period ends Nov. 15, 2018.
The CLO is backed primarily by broadly syndicated senior secured corporate loans.
Marathon Asset Management previously priced the $490.25 million Marathon CLO VI Ltd./Marathon CLO VI LLC deal in April.
The New York City-based credit manager brought the $614.25 million Marathon CLO V Ltd. transaction in 2013.
| Issuer: | Marathon CLO VII Ltd./Marathon CLO VII LLC
|
| Amount: | $460.75 million
|
| Maturity: | Nov. 15, 2025
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Marathon Asset Management LP
|
| Call feature: | Nov. 15, 2016
|
| Pricing date: | Oct. 31
|
| Settlement date: | Nov. 17
|
|
|
|
|
| Class A-1 notes
|
| Amount: | $272.65 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $54.95 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B notes
|
| Amount: | $36.4 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C notes
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| Amount: | $28.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 380 bps
|
| Rating: | Standard & Poor’s: BBB-
|
|
|
| Class D notes
|
| Amount: | $18.65 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 540 bps
|
| Rating: | Standard & Poor’s: BB-
|
|
|
| Equity tranche
|
| Amount: | $49.5 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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