TCI Capital preps $408.75 million TCI-Flatiron CLO offering

By Cristal Cody

Eureka Springs, May 24 – TCI Capital Management, LLC plans to price $408.75 million of notes due July 17, 2028 in the TCI-Flatiron CLO 2016-1 Ltd./TCI-Flatiron CLO 2016-1 LLC transaction, according to a market source.

The deal includes $256 million of class A floating-rate notes (//AAA); $46 million of class B floating-rate notes; $22 million of class C floating-rate notes; $24 million of class D floating-rate notes; $20 million of class E floating-rate notes and $40.75 million of subordinated notes.

BofA Merrill Lynch will arrange the offering.

TCI Capital is the collateral manager, and NYL Investors LLC is the sub-adviser.

The CLO, collateralized primarily by broadly syndicated first-lien senior secured loans, will have a two-year non-call period and a 4½-year reinvestment period.

Proceeds from the deal will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.

The transaction is expected to close on June 29.

TCI Capital is a subsidiary of Saint Peter Port, Guernsey-based closed-ended investment company Tetragon Financial Group Ltd. and an affiliate of LCM Asset Management LLC.

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