By Cristal Cody
Tupelo, Miss., April 1 – Guggenheim Partners Investment Management LLC sold $856.75 million of notes due April 26, 2027 in a collateralized loan obligation transaction, according to a market source.
NZCG Funding 2 Ltd. priced $531.25 million of class A-1 senior secured floating-rate notes at Libor plus 155 basis points; $88.9 million of class A-2 senior secured floating-rate notes at Libor plus 235 bps; $44.5 million of class B mezzanine secured deferrable floating-rate notes at Libor plus 330 bps; $51.4 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 370 bps; $52.3 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 630 bps and $88.4 million of subordinated notes.
Citigroup Global Markets Inc. arranged the offering.
Guggenheim will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The notes are collateralized mainly by broadly syndicated first-lien senior secured loans and eligible investments.
Guggenheim Partners Investment Management also priced the $558.9 million Kitty Hawk CLO 2015-1 LLC/Kitty Hawk CLO 2015-1 Ltd. transaction on March 26.
Guggenheim brought one new CLO deal and reopened a vintage 2012 CLO in 2014.
The investment management firm is based in New York and Chicago.
| Issuer: | NZCG Funding 2 Ltd.
|
| Amount: | $856.75 million
|
| Maturity: | April 26, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Guggenheim Partners Investment Management LLC
|
| Call feature: | 2017
|
| Pricing date: | March 27
|
| Settlement date: | April 27
|
|
|
| Class A-1 notes
|
| Amount: | $531.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2 notes
|
| Amount: | $88.9 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $44.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $51.4 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $52.3 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 630 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $88.4 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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