By Cristal Cody
Eureka Springs, Ark., Sept. 19 – LCM Asset Management LLC priced $448.6 million of notes due Oct. 15, 2028 at par in the LCM XXII LP/LCM XXII LLC collateralized loan obligation offering, according to a market source.
The CLO sold $2.6 million of class X floating-rate notes at Libor plus 128 basis points; $277.2 million of class A-1 floating-rate notes at Libor plus 148 bps; $57.2 million of class A-2 floating-rate notes at Libor plus 180 bps; $30.8 million of class B floating-rate notes at Libor plus 240 bps; $22 million of class C floating-rate notes at Libor plus 385 bps; $17.6 million of class D floating-rate notes at Libor plus 665 bps and $41.2 million of subordinated notes.
Natixis Securities Americas LLC was the placement agent.
LCM Asset Management will manage the CLO.
The CLO has a non-call period that ends Oct. 20, 2018 and a reinvestment period that ends Oct. 20, 2021.
The deal is collateralized primarily by first-lien senior secured loans.
Proceeds from the offering will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.
LCM Asset Management has priced three CLO transactions year to date.
The CLO manager brought three CLO deals and refinanced one vintage CLO in 2015.
The New York City-based asset management firm is a subsidiary of Tetragon Financial Group Ltd.
| Issuer: | LCM XXII LP/LCM XXII LLC
|
| Amount: | $448.6 million
|
| Maturity: | Oct. 15, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Natixis Securities Americas LLC
|
| Manager: | LCM Asset Management LLC
|
| Call feature: | Oct. 20, 2018
|
| Pricing date: | Sept. 15
|
| Settlement date: | Oct. 20
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Class X notes
|
| Amount: | $2.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 128 bps
|
| Price: | Par
|
| Ratings: | Standard & Poor’s: AAA
|
| Fitch: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $277.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 148 bps
|
| Price: | Par
|
| Ratings: | Standard & Poor’s: AAA
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $57.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Price: | Par
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B notes
|
| Amount: | $30.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Price: | Par
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C notes
|
| Amount: | $22 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Price: | Par
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class D notes
|
| Amount: | $17.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 665 bps
|
| Price: | Par
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Equity
|
| Amount: | $41.2 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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