By Cristal Cody
Eureka Springs, Ark., April 4 – CreekSource LLC priced $302.5 million of notes due April 15, 2028 in a collateralized loan obligation offering, according to details from a market source.
Mill Creek CLO II, Ltd./Mill Creek CLO II LLC sold $196.5 million of class A floating-rate notes (Aaa (expected)//AAA) at Libor plus 175 basis points; $25.5 million of class B floating-rate notes (Aa2 (expected)//AA) at Libor plus 250 bps; $15.6 million of class C floating-rate notes (A2 (expected)//A) at Libor plus 335 bps; $18 million of class D floating-rate notes (Baa3 (expected)//BBB-) at Libor plus 485 bps; $12.3 million of class E floating-rate notes (Ba3 (expected)//) at Libor plus 775 bps and $34.6 million of subordinated notes.
Goldman Sachs & Co. was the placement agent.
CreekSource will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is backed entirely by first-lien senior secured loans.
Proceeds from the offering will be used to purchase a portfolio of about $300 million of mostly senior secured leveraged loans.
CreekSource was in the primary market in 2015 with two CLO deals.
The CLO manager is an affiliate of Carmel, Ind.-based investment management firm 40|86 Advisors, Inc.
| Issuer: | Mill Creek CLO II, Ltd./Mill Creek CLO II LLC
|
| Amount: | $302.5 million
|
| Maturity: | April 15, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: Goldman Sachs & Co.
|
| Manager: | CreekSource LLC
|
| Call feature: | Two years
|
| Pricing date: | March 21
|
| Settlement date: | April 21
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $196.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | Moody’s: Aaa (expected)
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $25.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | Moody’s: Aa2 (expected)
|
| Fitch: AA
|
|
|
| Class C notes
|
| Amount: | $15.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 335 bps
|
| Ratings: | Moody’s: A2 (expected)
|
| Fitch: A
|
|
|
| Class D notes
|
| Amount: | $18 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 485 bps
|
| Ratings: | Moody’s: Baa3 (expected)
|
| Fitch: BBB-
|
|
|
| Class E notes
|
| Amount: | $12.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 775 bps
|
| Rating: | Moody’s: Ba3 (expected)
|
|
|
| Equity
|
| Amount: | $34.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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