By Cristal Cody
Tupelo, Miss., Jan. 17 – Telos Asset Management LLC priced $366.2 million of notes and loans due Jan. 17, 2030 in a refinancing and reset of the Telos CLO 2013-4, Ltd./Telos CLO 2013-4, LLC broadly syndicated collateralized loan obligation offering, according to a market source and an amended and restated notice of changed pages to proposed third supplemental indenture on Tuesday.
The CLO sold $4.2 million of class X senior secured floating-rate notes at Libor plus 75 basis points; $215 million of class A-R senior secured floating-rate notes at Libor plus 124 bps; $47.5 million of class B-R senior secured floating-rate notes at Libor plus 180 bps; $21 million of class C-R loans at Libor plus 260 bps; $24.5 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 340 bps; $4 million of class E-R mezzanine secured deferrable floating-rate notes at Libor plus 655 bps and $40 million of subordinated notes.
Goldman Sachs & Co. LLC was the refinancing placement agent.
Telos Asset Management will continue to manage the CLO.
The reset CLO has a two-year non-call period and a four-year reinvestment period.
In the original $365.25 million deal issued Aug. 6, 2013, the CLO priced $214 million of class A senior secured floating-rate notes at Libor plus 130 bps; $46.5 million of class B senior secured floating-rate notes at Libor plus 180 bps; $29 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 275 bps; $19.25 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 350 bps; $16 million of class E mezzanine secured deferrable floating-rate notes at Libor plus 500 bps and $37 million of subordinated notes. The notes were due July 17, 2024.
The CLO also priced $3.5 million of class X senior secured floating-rate notes due July 17, 2017 at Libor plus 95 bps in the original transaction.
Proceeds were used on Wednesday to redeem the original notes.
The credit management firm is a subsidiary of New York-based Tiptree Financial Inc.
| Issuer: | Telos CLO 2013-4, Ltd./Telos CLO 2013-4, LLC
|
| Amount: | $366.2 million refinancing
|
| Maturity: | Jan. 17, 2030
|
| Securities: | Floating-rate notes, loans and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Goldman Sachs & Co. LLC
|
| Manager: | Telos Asset Management LLC
|
| Call feature: | January 2020
|
| Settlement date: | Jan. 17
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $4.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 75 bps
|
| Rating: | S&P: AAA expected
|
|
|
| Class A-R notes
|
| Amount: | $215 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 124 bps
|
| Ratings: | S&P: AAA expected
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $47.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | S&P: AA expected
|
|
|
| Class C-R loans
|
| Amount: | $21 million
|
| Securities: | Loans
|
| Coupon: | Libor plus 260 bps
|
| Rating: | S&P: A expected
|
|
|
| Class D-R notes
|
| Amount: | $24.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Rating: | S&P: BBB- expected
|
|
|
| Class E-R notes
|
| Amount: | $14 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 655 bps
|
| Rating: | S&P: BB- expected
|
|
|
| Equity
|
| Amount: | $40 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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