By Cristal Cody
Tupelo, Miss., March 13 – Octagon Credit Investors, LLC priced $510,675,000 of notes due April 15, 2031 in the new Octagon Investment Partners 36, Ltd./Octagon Investment Partners 36, LLC transaction, according to a market source.
The CLO sold $2 million of class X floating-rate notes at Libor plus 55 basis points, $297.5 million of class A-1 floating-rate notes at Libor plus 97 bps and $37.5 million of class A-2 floating-rate notes at Libor plus 120 bps.
Octagon Investment Partners 36 also sold $31.25 million of class B floating-rate notes at Libor plus 139 bps; $43.75 million of class C deferrable floating-rate notes at Libor plus 170 bps; $30 million of class D deferrable floating-rate notes at Libor plus 260 bps; $20 million of class E deferrable floating-rate notes at Libor plus 550 bps; $10 million of class F deferrable floating-rate notes at Libor plus 775 bps and $38,675,000 of subordinated notes.
Wells Fargo Securities, LLC arranged the offering.
Octagon Credit Investors will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The notes are backed primarily by broadly syndicated senior secured corporate loans.
Octagon Credit Investors has priced two new CLOs year to date.
In 2017, the CLO manager brought four new CLOs to the market.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners 36, Ltd./Octagon Investment Partners 36, LLC
|
| Amount: | $510,675,000
|
| Maturity: | April 15, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | Two years
|
| Pricing date: | March 7
|
| Settlement date: | April 5
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 55 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $297.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 97 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $37.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Ratings: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $31.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 139 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $43.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $20 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Ratings: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $10 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 775 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $38,675,000
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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