By Cristal Cody
Eureka Springs, Ark., July 18 – Sound Point Capital Management LP priced $722.5 million of notes due Oct. 20, 2028 in the Sound Point CLO XII, Ltd./Sound Point CLO XII LLC transaction, according to a market source.
The CLO sold $5.25 million of class X floating-rate notes at Libor plus 125 basis points; $451.5 million of class A floating-rate notes at Libor plus 166 bps; $55.5 million of class B-1 floating-rate notes at Libor plus 225 bps; $25 million of 3.48% class B-2 fixed-rate notes; $42 million of class C floating-rate notes at Libor plus 290 bps; $35 million of class D floating-rate notes at Libor plus 425 bps; $35 million of class E floating-rate notes at Libor plus 640 bps and $73.25 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
Sound Point Capital will manage the CLO, which has a two-year non-call period and a four-year reinvestment period.
The CLO is backed primarily by first lien senior secured loans.
Proceeds will be used to purchase a $700 million portfolio of mostly senior secured leveraged loans.
Sound Point Capital has been in the primary market with two CLO deals in 2016.
The New York-based asset management firm priced three CLO transactions in 2015.
Issuer: | Sound Point CLO XII, Ltd./Sound Point CLO XII Inc.
|
Amount: | $722.5 million
|
Maturity: | Oct. 20, 2028
|
Securities: | Fixed-rate, floating-rate and subordinated notes
|
Structure: | Cash flow CLO
|
Placement agent: | Credit Suisse Securities (USA) LLC
|
Manager: | Sound Point Capital Management LP
|
Call feature: | Two years
|
Pricing date: | July 13
|
Settlement date: | Aug. 16
|
Distribution: | Rule 144A
|
|
Class X notes
|
Amount: | $5.25 million
|
Securities: | Senior secured floating-rate notes
|
Coupon: | Libor plus 125 bps
|
Ratings: | Moody’s: Aaa Expected
|
| Fitch: AAA
|
|
Class A notes
|
Amount: | $451.5 million
|
Securities: | Floating-rate notes
|
Coupon: | Libor plus 166 bps
|
Ratings: | Moody’s: Aaa Expected
|
| Fitch: AAA
|
|
Class B-1 notes
|
Amount: | $55.5 million
|
Securities: | Floating-rate notes
|
Coupon: | Libor plus 225 bps
|
Ratings: | Moody’s: | Aa2 Expected
|
| Fitch: AA
|
|
Class B-2 notes
|
Amount: | $25 million
|
Securities: | Fixed-rate notes
|
Coupon: | 3.48%
|
Ratings: | Moody’s: Aa2 Expected
|
|
Class C notes
|
Amount: | $42 million
|
Securities: | Floating-rate notes
|
Coupon: | Libor plus 290 bps
|
Ratings: | Moody’s: A2 Expected
|
|
Class D notes
|
Amount: | $35 million
|
Securities: | Floating-rate notes
|
Coupon: | Libor plus 425 bps
|
Ratings: | Moody’s: Baa3 Expected
|
|
Class E notes
|
Amount: | $35 million
|
Securities: | Floating-rate notes
|
Coupon: | Libor plus 640 bps
|
Ratings: | Moody’s: Ba3 Expected
|
|
Equity
|
Amount: | $73.25 million
|
Securities: | Subordinated notes
|
Ratings: | Non-rated
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.