By Cristal Cody
Tupelo, Miss., Feb. 10 – Guggenheim Partners Investment Management, LLC raised $846.1 million in a collateralized loan obligation offering of notes due Feb. 25, 2027, according to a market source.
NZCG Funding Ltd./NZCG Funding LLC sold $514 million of class A-1 floating-rate notes at Libor plus 177 basis points; $82.6 million of class A-2 floating-rate notes at Libor plus 275 bps; $49.7 million of class B floating-rate notes at Libor plus 350 bps; $46.5 million of class C floating-rate notes at Libor plus 410 bps; $51.4 million of class D floating-rate notes at Libor plus 565 bps and $101.9 million of preferred securities.
Citigroup Global Markets Inc. was the placement agent.
Guggenheim will manage the CLO, which has a four-year reinvestment period that may be extended for up to five years.
The CLO is non-callable for two years.
The transaction is backed mainly by first lien senior secured loans.
Proceeds from the deal will be used to purchase collateral to reach a target portfolio of about $845 million of primarily senior secured leveraged loans.
Guggenheim, a New York- and Chicago-based investment management firm, brought two CLO transactions in 2014.
| Issuer: | NZCG Funding Ltd./NZCG Funding LLC
|
| Amount: | $846.1 million
|
| Maturity: | Feb. 25, 2027
|
| Securities: | Floating-rate notes and preferred securities
|
| Structure: | Cash flow CLO
|
| Placement agent: Citigroup Global Markets Inc.
|
| Manager: | Guggenheim Partners Investment Management, LLC
|
| Call feature: | Two years
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 25
|
|
|
|
|
| Class A-1 notes
|
| Amount: | $514 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 177 bps
|
| Ratings: | Moody’s: Aaa Expected
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $82.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Ratings: | Moody’s: Aa2 Expected
|
|
|
| Class B notes
|
| Amount: | $49.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Ratings: | Moody’s: A2 Expected
|
|
|
| Class C notes
|
| Amount: | $46.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Ratings: | Moody’s: Baa3 Expected
|
|
|
| Class D notes
|
| Amount: | $51.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 565 bps
|
| Ratings: | Moody’s: Ba3 Expected
|
|
|
| Equity tranche
|
| Amount: | $101.9 million
|
| Securities: | Preferred securities
|
| Ratings: | Non-rated
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
