By Cristal Cody
Eureka Springs, Ark., June 20 – Guggenheim Partners Investment Management LLC priced a $401.45 million collateralized loan obligation transaction, a market source said.
The Seven Sticks 2016-1 CLO Ltd. offering sold $256 million of class A-1 floating-rate notes at Libor plus 170 basis points and $44.3 million of class A-2 floating-rate notes at Libor plus 230 bps.
The CLO also priced $20.6 million of class B floating-rate notes at Libor plus 325 bps, $27.3 million of class C floating-rate notes at Libor plus 410 bps; $20 million of class D floating-rate notes at Libor plus 760 bps and $33.25 million of subordinated notes.
Citigroup Global Markets Inc. arranged the deal.
Guggenheim is the CLO manager.
The Santa Monica, Calif.-based investment management firm and subsidiary of Guggenheim Partners, LLC priced five CLO transactions in 2015.
| Issuer: | Seven Sticks 2016-1 CLO Ltd.
|
| Amount: | $401.45 million
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Guggenheim Partners Investment Management LLC
|
| Pricing date: | June 15
|
|
|
| Class A-1 notes
|
| Amount: | $256 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
| Class A-2 notes
|
| Amount: | $44.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B notes
|
| Amount: | $20.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class C notes
|
| Amount: | $27.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class D notes
|
| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 760 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Equity
|
| Amount: | $33.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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