By Cristal Cody
Tupelo, Miss., Dec. 30 – Mariner Investment Group, LLC sold $502 million of notes due Jan. 17, 2023 in the Elm CLO 2014-1 Ltd./Elm CLO 2014-1 LLC offering, according to a market source.
The CLO priced $331 million of class A floating-rate notes at Libor plus 140 basis points; $38.25 million of class B-1 floating-rate notes at Libor plus 190 bps; $17 million of 3.54% class B-2 fixed-rate notes; $26.25 million of class C deferrable floating-rate notes at Libor plus 275 bps; $25.25 million of class D deferrable floating-rate notes at Libor plus 450 bps; $21 million of class E deferrable floating-rate notes at Libor plus 650 bps and $43.25 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
The CLO is non-callable for one year and does not have a reinvestment period.
The transaction is backed primarily by senior secured loans.
Proceeds from the deal will be used to purchase assets to reach a target portfolio of about $500 million of mostly leveraged loans.
Mariner Investment is an alternative asset management firm based in New York City.
| Issuer: | Elm CLO 2014-1 Ltd./Elm CLO 2014-1 LLC
|
| Amount: | $502 million
|
| Maturity: | Jan. 17, 2023
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Mariner Investment Group, LLC
|
| Call feature: | Jan. 17, 2016
|
| Settlement date: | Dec. 30
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $331 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Standard & Poor’s: AAA
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $38.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B-2 notes
|
| Amount: | $17 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.54%
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $26.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $26.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 450 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $21 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | Standard & Poor’s: BB-
|
|
|
| Equity tranche
|
| Amount: | $43.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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