By Cristal Cody
Eureka Springs, Ark., May 24 – Newfleet Asset Management, LLC priced $356.3 million of notes due April 20, 2028 in a debut collateralized loan obligation deal, according to details from a market source.
Newfleet CLO 2016-1, Ltd. sold $50 million of class X senior secured floating-rate notes at Libor plus 100 basis points and $227.5 million of class A senior secured floating-rate notes at Libor plus 185 bps in the AAA-rated tranches.
The CLO also sold $38.5 million of class B senior secured floating-rate notes at Libor plus 268 bps; $21 million of class C secured deferrable floating-rate notes at Libor plus 360 bps; $17.5 million of class D secured deferrable floating-rate notes at Libor plus 530 bps; $15 million of class E secured deferrable floating-rate notes at Libor plus 875 bps and $36.3 million of subordinated notes.
Wells Fargo Securities, LLC was the placement agent.
Newfleet Asset Management will manage the CLO, which has a two-year non-call period and a four-year reinvestment period.
The CLO is backed by a broadly syndicated loan portfolio of non-investment-grade loans and other assets that the manager purchases from and trades in the primary and secondary markets.
Newfleet Asset Management is a Hartford, Conn.-based fixed income investment firm.
| Issuer: | Newfleet CLO 2016-1, Ltd.
|
| Amount: | $356.3 million
|
| Maturity: | April 20, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | Newfleet Asset Management, LLC
|
| Call feature: | Two years
|
| Pricing date: | May 17
|
| Settlement date: | June 9
|
|
|
| Class X notes
|
| Amount: | $50 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A notes
|
| Amount: | $227.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $38.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 268 bps
|
| Price: | 99.53
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $21 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Price: | 98.99
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $17.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 530 bps
|
| Price: | 91.18
|
| Rating: | S&P: BBB
|
|
|
| Class E notes
|
| Amount: | $15 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 875 bps
|
| Price: | 88.12
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $36.3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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