By Cristal Cody
Tupelo, Miss., Oct. 15 – CLO manager LCM Asset Management LLC priced $509 million of notes due Oct. 20, 2027 in a new collateralized loan obligation deal, according to a market source.
LCM XX LP/LCM XX LLC sold $315 million of class A floating-rate notes at Libor plus 150 basis points; $60 million of class B floating-rate notes at Libor plus 220 bps; $37.5 million of class C deferrable floating-rate notes at Libor plus 320 bps; $25 million of class D deferrable floating-rate notes at Libor plus 375 bps; $20 million of class E deferrable floating-rate notes at Libor plus 610 bps and $51.5 million of limited participation certificates.
BofA Merrill Lynch was the placement agent.
The CLO has a non-call period that ends on Oct. 20, 2018. The reinvestment period ends on Oct. 20, 2020.
The transaction is backed primarily by broadly syndicated senior secured corporate loans.
LCM has priced three CLOs and refinanced one vintage CLO year to date.
The New York City-based asset management firm brought three CLO deals in 2014.
| Issuer: | LCM XX LP/LCM XX LLC
|
| Amount: | $509 million
|
| Maturity: | Oct. 20, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | LCM Asset Management LLC
|
| Call feature: | From Oct. 20, 2018
|
| Pricing date: | Oct. 15
|
| Settlement date: | Nov. 13
|
|
|
| Class A notes
|
| Amount: | $315 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Standard & Poor’s: AAA
|
|
|
| Class B notes
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| Amount: | $60 million
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| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Ratings: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $37.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 320 bps
|
| Ratings: | Standard & Poor’s: A
|
|
|
| Class D notes
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| Amount: | $25 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 375 bps
|
| Ratings: | Standard & Poor’s: BBB
|
|
|
| Class E notes
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| Amount: | $20 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 610 bps
|
| Ratings: | Standard & Poor’s: BB
|
|
|
| Equity
|
| Amount: | $51.5 million
|
| Securities: | Limited partnership certificates
|
| Ratings: | Non-rated
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