By Cristal Cody
Tupelo, Miss., Oct. 18 – Sound Point Capital Management LP sold $525 million of notes due April 15, 2027 in a refinancing of four tranches from the Sound Point CLO VIII, Ltd./Sound Point CLO VIII, Inc. transaction, according to a market source and a notice of executed supplemental indenture.
The CLO sold $390 million of class A-R senior secured floating-rate notes at Libor plus 86 basis points; $69 million of class B-R senior secured floating-rate notes at Libor plus 145 bps; $33 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 185 bps and $33 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 285 bps.
Morgan Stanley & Co. LLC was the refinancing placement agent.
Sound Point Capital will manage the CLO.
The CLO originally priced on March 5, 2015 and sold $4 million of class X floating-rate notes at Libor plus 100 bps; $340 million of class A floating-rate notes at Libor plus 153 bps; $50 million of class A floating-rate loans at Libor plus 138 bps; $69 million of class B floating-rate notes at Libor plus 205 bps; $33 million of class C floating-rate notes at Libor plus 300 bps; $33 million of class D floating-rate notes at Libor plus 365 bps; $27 million of class E floating-rate notes at Libor plus 530 bps; $15.6 million of class F deferrable floating-rate notes at Libor plus 685 bps and $53.4 million of subordinated notes.
Proceeds were used to redeem the original class A, B, C and D notes and to repay the class A loans.
The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
Sound Point Capital has priced three new CLOs and refinanced eight vintage CLOs year to date.
The New York-based asset management firm priced three new CLO deals in 2016.
| Issuer: | Sound Point CLO VIII, Ltd./Sound Point CLO VIII, Inc.
|
| Amount: | $525 million refinancing
|
| Maturity: | April 15, 2027
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Sound Point Capital Management LP
|
| Settlement date: | Oct. 16
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $390 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 86 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $69 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | Moody’s: Aa1
|
|
|
| Class C-R notes
|
| Amount: | $33 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
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| Amount: | $33 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 285 bps
|
| Rating: | Moody’s: Baa3
|
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