By Cristal Cody
Tupelo, Miss., July 3 – Octagon Credit Investors, LLC priced $507.5 million of notes due July 20, 2032 in a new collateralized loan obligation transaction, according to a market source.
Octagon Investment Partners 44, Ltd./Octagon Investment Partners 44, LLC sold $325 million of class A floating-rate notes Libor plus 130 basis points, $51 million of class B floating-rate notes at Libor plus 180 bps and $30.5 million of class C floating-rate notes at Libor plus 240 bps, $30.5 million of class C deferrable floating-rate notes at Libor plus 240 bps; $29.75 million of class D deferrable floating-rate notes at Libor plus 365 bps; $23.75 million of class E deferrable floating-rate notes at Libor plus 679 bps and $47.5 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Octagon Credit Investors will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The transaction is backed primarily by first-lien senior secured corporate loans.
Octagon Credit Investors has priced four new CLOs year to date.
The New York-based non-high-grade corporate credit investment adviser is majority owned by Conning & Co.
| Issuer: | Octagon Investment Partners 44, Ltd./Octagon Investment Partners 44, LLC
|
| Amount: | $507.5 million
|
| Maturity: | July 20, 2032
|
| Securities | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | Two years
|
| Pricing date: | June 20
|
| Settlement date: | July 24
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A notes
|
| Amount: | $325 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Ratings: | Moody’s: Aaa expected
|
| S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $51 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | Moody’s: None expected
|
| S&P: AA
|
|
|
| Class C notes
|
| Amount: | $30.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Ratings: | Moody’s: None expected
|
| S&P: A
|
|
|
| Class D notes
|
| Amount: | $29.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Ratings: | Moody’s: None expected
|
| S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $23.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 679 bps
|
| Ratings: | Moody’s: Ba3 expected
|
| S&P: Non-rated
|
|
|
| Equity
|
| Amount: | $47.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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