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Published on 8/22/2016 in the Prospect News CLO Daily.

New Issue: Canyon CLO Advisors sells $460.8 million notes in Canyon CLO 2016-2

By Cristal Cody

Eureka Springs, Ark., Aug. 22 – Canyon CLO Advisors LLC priced $460.8 million of notes due Aug. 20, 2028 in a new collateralized loan obligation offering, according to a market source.

Canyon Capital CLO 2016-2, Ltd./Canyon Capital CLO 2016-2, LLC sold $288 million of class A senior secured floating-rate notes at Libor plus 150 basis points; $57.8 million of class B senior secured floating-rate notes at Libor plus 200 bps; $20.7 million of class C senior secured deferrable floating-rate notes at Libor plus 260 bps; $26.2 million of class D senior secured deferrable floating-rate notes at Libor plus 380 bps; $21.3 million of class E senior secured deferrable floating-rate notes at Libor plus 675 bps and $46.8 million of subordinated notes.

J.P. Morgan Securities LLC was the placement agent.

Canyon CLO Advisors will manage the CLO.

The deal has a two-year non-call period and a four-year reinvestment period.

Proceeds will be used to purchase a portfolio of about $450 million of mostly senior secured leveraged loans.

The transaction is collateralized primarily by first-lien senior secured loans.

Canyon CLO Advisors has priced two CLO deals year to date.

The Los Angeles-based firm is a subsidiary of alternative asset manager Canyon Capital Advisors LLC.

Issuer:Canyon Capital CLO 2016-2, Ltd./Canyon Capital CLO 2016-2, LLC
Amount:$460.8 million
Maturity:Aug. 20, 2028
Securities:Fixed-rate, floating-rate and subordinated notes
Structure:Cash flow CLO
Placement agent:J.P. Morgan Securities LLC
Manager:Canyon CLO Advisors LLC
Call feature:Two years
Pricing date:Aug. 8
Settlement date:Sept. 15
Distribution:Rule 144A
Class A notes
Amount:$288 million
Securities:Senior secured floating-rate notes
Coupon:Libor plus 150 bps
Ratings:Moody’s: Aaa
Fitch: AAA
Class B notes
Amount:$57.8 million
Securities:Senior secured floating-rate notes
Coupon:Libor plus 200 bps
Ratings:Moody’s: Aa2
Fitch: AA
Class C notes
Amount:$20.7 million
Securities:Senior secured deferrable floating-rate notes
Coupon:Libor plus 260 bps
Rating:Moody’s: A2
Class D notes
Amount:$26.2 million
Securities:Senior secured deferrable floating-rate notes
Coupon:Libor plus 380 bps
Rating:Moody’s: Baa3
Class E notes
Amount:$21.3 million
Securities:Senior secured deferrable floating-rate notes
Coupon:Libor plus 675 bps
Rating:Moody’s: Ba3
Equity
Amount:$46.8 million
Securities:Subordinated notes
Ratings:Non-rated

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