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
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| Amount: | $20.7 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $26.2 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 380 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| 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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