Tiptree Financial to price $252.37 million of notes in six tranches in Telos 2016-7 CLO deal

By Cristal Cody

Eureka Springs, March 17 – Tiptree Financial Inc. plans to price $252.37 million of notes due 2025 in the Telos 2016-7, Ltd./Telos 2016-7 LLC collateralized loan obligation offering, according to a market source.

The deal includes $156.5 million of class A floating-rate notes (/AAA); $37 million of class B floating-rate notes (/AA); $14.5 million of class C deferrable floating-rate notes (/A); $12 million of class D deferrable floating-rate notes (/BBB-); $5 million of class E deferrable floating-rate notes (/BB-) and $27.37 million of subordinated notes.

SG Americas Securities LLC is the underwriter.

Telos Asset Management LLC will manage the CLO.

The CLO has a two-year non-call period. It will not have a reinvestment period.

The deal is backed mainly by a static pool of broadly syndicated senior secured loans.

Tiptree Financial announced in August that it had sold $39.7 million of subordinated notes in two CLOs and contributed $30 million of the proceeds to a new loan warehouse facility to create a new CLO.

Credit manager Telos Asset Management, a subsidiary of New York-based Tiptree, was last in the CLO primary market in 2014.

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