By Cristal Cody
Tupelo, Miss., May 13 – Octagon Credit Investors, LLC priced $510.65 million of notes in a reissue of a vintage 2014 collateralized loan obligation transaction, according to market sources.
Octagon Investment Partners 20-R, Ltd./Octagon Investment Partners 20-R, LLC sold $5 million of class X senior secured floating-rate notes at Libor plus 65 basis points, $305 million of class A-1 senior secured floating-rate notes Libor plus 133 bps and $15 million of class A-2 senior secured floating-rate notes at Libor plus 165 bps.
The CLO also priced $55.8 million of class B senior secured floating-rate notes at Libor plus 190 bps, $23.6 million of class C secured deferrable floating-rate notes at Libor plus 260 bps, $31.5 million of class D secured deferrable floating-rate notes at Libor plus 375 bps and $24.1 million of class E secured deferrable floating-rate notes at Libor plus 680 bps. The deal included $23.4 million of class 1 subordinated notes, $2.45 million of class 2 subordinated note and $24.8 million of class 3 subordinated notes.
J.P. Morgan Securities LLC was the refinancing placement agent.
Octagon Credit Investors will continue to manage the CLO.
The CLO has an extended two-year non-call period and a five-year reinvestment period.
The CLO was first refinanced in a $645.35 million offering on May 12, 2017. In the refinancing, the CLO sold $480 million of class A-R senior secured floating-rate notes at Libor plus 113 bps, $79.5 million of class B-R senior secured floating-rate notes at Libor plus 150 bps, $37.75 million of class C-R secured deferrable floating-rate notes at Libor plus 215 bps and $48.1 million of class D-R secured deferrable floating-rate notes at Libor plus 355 bps.
In the original $770.3 million deal issued Aug. 15, 2014, the CLO priced $480 million of class A senior secured notes at Libor plus 144 bps; $79.5 million of class B senior secured notes at Libor plus 205 bps; $37.75 million of class C deferrable notes at Libor plus 280 bps; $48.1 million of class D deferrable notes at Libor plus 365 bps; $44.65 million of class E deferrable notes at Libor plus 525 bps and $80.3 million of subordinated notes.
Proceeds will be used to redeem the outstanding refinanced notes.
The deal is backed primarily by broadly syndicated senior secured loans.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners 20-R, Ltd./Octagon Investment Partners 20-R, LLC
|
| Amount: | $510.65 million
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Pricing date: | April 25
|
| Settlement date: | May 13
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class X notes
|
| Amount: | $5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: Non-rated
|
|
|
| Class A-1 notes
|
| Amount: | $305 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 133 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $15 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Ratings: | Moody’s: Non-rated
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $55.8 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $23.6 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $31.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $24.1 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 680 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class 1 notes
|
| Amount: | $23.4 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
| Class 2 notes
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| Amount: | $2.45 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
| Class 3 notes
|
| Amount: | $24.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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