By Cristal Cody
Tupelo, Miss., Nov. 25 – Guggenheim Partners Investments Management, LLC sold $994,725,000 of notes due Nov. 25, 2027 in the 5180-2 CLO LP transaction, according to a market source.
The CLO priced $603.3 million of class A-1 senior secured floating-rate notes at Libor plus 170 basis points, $84.6 million of class A-2A senior secured floating-rate notes at Libor plus 275 bps and $25 million of class A-2B senior secured floating-rate notes at Libor plus 255 bps.
The CLO also sold $53.3 million of class B mezzanine secured deferrable floating-rate notes at Libor plus 400 bps; $68.4 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 450 bps; $65.4 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 610 bps and $94,425,000 of subordinated notes.
Citigroup Global Markets Inc. arranged the offering.
Guggenheim Partners Investments Management will manage the CLO.
The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase collateral to reach a target portfolio of about $992.05 million of mostly senior secured leveraged loans.
The CLO will have a four-year reinvestment period that may be extended for up to an additional five years, according to Fitch Ratings.
Guggenheim last priced a CLO in the 5180 series in November 2011 when it brought the 5180 CLO LP transaction.
Guggenheim Partners Investment Management has priced five CLO deals year to date.
The Santa Monica, Calif.-based investment management firm is a subsidiary of Guggenheim Partners, LLC.
Issuer: | 5180-2 CLO LP
|
Amount: | $994,725,000
|
Maturity: | Nov. 25, 2027
|
Securities: | Floating-rate and subordinated notes
|
Structure: | Cash flow CLO
|
Placement agent: | Citigroup Global Markets Inc.
|
Manager: | Guggenheim Partners Investments Management, LLC
|
Settlement date: | Nov. 25
|
Distribution: | Rule 144A
|
|
Class A-1 notes
|
Amount: | $603.6 million
|
Securities: | Senior secured floating-rate notes
|
Coupon: | Libor plus 170 bps
|
Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
Class A-2A notes
|
Amount: | $84.6 million
|
Securities: | Senior secured floating-rate notes
|
Coupon: | Libor plus 275 bps
|
Rating: | Moody’s: Aa2
|
|
Class A-2B notes
|
Amount: | $25 million
|
Securities: | Senior secured floating-rate notes
|
Coupon: | Libor plus 255 bps
|
Rating: | Moody’s: Aa2
|
|
Class B notes
|
Amount: | $53.3 million
|
Securities: | Mezzanine secured deferrable floating-rate notes
|
Coupon: | Libor plus 400 bps
|
Rating: | Moody’s: A2
|
|
Class C notes
|
Amount: | $68.4 million
|
Securities: | Mezzanine secured deferrable floating-rate notes
|
Coupon: | Libor plus 450 bps
|
Rating: | Moody’s: Baa3
|
|
Class D notes
|
Amount: | $65.4 million
|
Securities: | Mezzanine secured deferrable floating-rate notes
|
Coupon: | Libor plus 610 bps
|
Rating: | Moody’s: Ba3
|
|
Equity
|
Amount: | $94,425,000
|
Securities: | Subordinated notes
|
Ratings: | Non-rated
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.