By Cristal Cody
Eureka Springs, Ark., April 18 – Regatta Loan Management LLC priced $411 million of notes due July 12, 2028 in a new U.S. and European risk retention-compliant collateralized loan obligation offering, according to a market source.
Regatta VI Funding Ltd./Regatta VI Funding LLC sold $3 million of class X floating-rate notes at Libor plus 100 basis points; $252 million of class A floating-rate notes at Libor plus 169 bps; $33.25 million of class B-1 floating-rate notes at Libor plus 240 bps; $15 million of 4.11% class B-2 fixed-rate notes; $23.75 million of class C floating-rate notes at Libor plus 342 bps; $22 million of class D floating-rate notes at Libor plus 505 bps; $20 million of class E floating-rate notes at Libor plus 701 bps and $42 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Regatta Loan Management will manage the CLO, which is backed primarily by first-lien senior secured loans.
The CLO has a 2.2-year non-call period and a 4.4-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.
Regatta Loan Management is an investment firm based in New York City.
| Issuer: | Regatta VI Funding Ltd./Regatta VI Funding LLC
|
| Amount: | $411 million
|
| Maturity: | July 12, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Regatta Loan Management LLC
|
| Call feature: | 2.2 years
|
| Pricing date: | April 15
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A notes
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| Amount: | $252 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 169 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
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| Amount: | $33.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
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| Amount: | $15 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.11%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $23.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 342 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
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| Amount: | $22 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 505 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
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| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 701 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $42 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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