By Cristal Cody
Tupelo, Miss., March 10 – Madison Capital Funding LLC priced a $302.85 million middle-market CLO deal in its first offering of the year, according to a market source.
MCF CLO V LLC sold $173.5 million of class A floating-rate notes at Libor plus 190 basis points; $25 million of class B floating-rate notes at Libor plus 255 bps; $23.5 million of class C floating-rate notes at Libor plus 355 bps; $18 million of class D floating-rate notes at Libor plus 455 bps; $22.25 million of class E floating-rate notes at Libor plus 735 bps and $40.6 million of subordinated notes.
The notes are April 20, 2029.
Wells Fargo Securities LLC arranged the offering that closed on Thursday.
Madison Capital Funding is the CLO manager.
The CLO is backed primarily by senior secured loans and has a two-year non-call period and a four-year reinvestment period.
Proceeds from the offering will be used to purchase a portfolio of about $300 million of mostly senior secured middle-market loans.
Madison Capital Funding is a Chicago-based middle-market finance company and subsidiary of New York Life Insurance Co.
| Issuer: | MCF CLO V LLC
|
| Amount: | $302.85 million
|
| Maturity: | April 20, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | Madison Capital Funding LLC
|
| Call feature: | Two years
|
| Pricing date: | Feb. 24
|
| Settlement date: | March 9
|
|
|
| Class A notes
|
| Amount: | $173.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 255 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $23.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 355 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $18 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 455 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $22.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 735 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $40.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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