By Cristal Cody
Tupelo, Miss., June 25 – Fortress Investment Group LLC brought a $408 million collateralized loan obligation transaction to market, according to details from a market source.
Fortress Credit Funding IV Ltd./Fortress Credit Investments IV LLC priced $220 million of class A senior secured floating-rate notes at Libor plus 125 basis points; $68 million of class B senior secured floating-rate notes at Libor plus 190 bps; $32 million of class C deferrable floating-rate notes at Libor plus 290 bps; $23 million of class D deferrable floating-rate notes at Libor plus 350 bps; $21 million of class E deferrable floating-rate notes at Libor plus 510 bps and $44 million of subordinated notes.
The notes are due July 17, 2023. The CLO is non-callable until July 17, 2017.
BofA Merrill Lynch was the placement agent.
Fortress Credit Investment IV CM LLC will manage the CLO.
The deal is backed primarily by a static pool of broadly syndicated senior secured corporate loans.
Fortress Investment Group has priced two new CLOs and refinanced two vintage 2012 deals year to date.
The New York City-based investment firm brought two CLO transactions in 2014.
| Issuer: | Fortress Credit Funding IV Ltd./Fortress Credit Investments IV LLC
|
| Amount: | $408 million
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| Maturity: | July 17, 2023
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
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| Manager: | Fortress Credit Investment IV CM LLC
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| Call feature: | July 17, 2017
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| Pricing date: | June 9
|
| Settlement date: | June 23
|
|
|
| Class A notes
|
| Amount: | $220 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
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| Amount: | $68 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 190 bps
|
| Ratings: | Standard & Poor’s: AA
|
|
|
| Class C notes
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| Amount: | $32 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 290 bps
|
| Ratings: | Standard & Poor’s: A
|
|
|
| Class D notes
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| Amount: | $23 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 350 bps
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| Ratings: | Standard & Poor’s: BBB
|
|
|
| Class E notes
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| Amount: | $21 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 510 bps
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| Ratings: | Standard & Poor’s: BB
|
|
|
| Equity
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| Amount: | $44 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
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