By Cristal Cody
Tupelo, Miss., April 13 – Allianz Global Investors, LLC priced $391.3 million of notes due Oct. 20, 2026 in a refinancing of four tranches from the Sound Harbor Loan Fund 2014-1 Ltd. CLO offering first priced in 2014, a market source said.
Sound Harbor Loan Fund sold $281.2 million of class A-1-R floating-rate notes at Libor plus 120 basis points, $60.6 million of class A-2-R floating-rate notes at Libor plus 170 bps, $21.1 million of class B-R floating-rate notes at Libor plus 250 bps and $28.4 million of class C-R floating-rate notes at Libor plus 390 bps.
J.P. Morgan Securities LLC arranged the offering.
Allianz Global Investors will manage the CLO.
Sound Harbor Partners originally priced the CLO in September 2014. Allianz announced in December that it would acquire Sound Harbor Partners in a transaction that closed in the first quarter of 2017.
Sound Harbor Loan Fund 2014-1 originally priced $281.2 million of class A-1 floating-rate notes at Libor plus 150 bps; $60.6 million of class A-2 floating-rate notes at Libor plus 215 bps; $21.1 million of class B floating-rate notes at Libor plus 290 bps; $28.4 million of class C floating-rate notes at Libor plus 476 bps; $22.8 million of class D floating-rate notes at Libor plus 700 bps and an equity tranche of $42.85 million of subordinated notes.
Proceeds will be used to redeem the original class A-1, A-2, B and C notes.
Allianz Global Investors is an investment management firm with offices in the United States, Europe and Asia Pacific.
| Issuer: | Sound Harbor Loan Fund 2014-1 Ltd.
|
| Amount: | $391.3 million refinancing
|
| Maturity: | Oct. 20, 2026
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Allianz Global Investors, LLC
|
| Pricing date: | April 4
|
|
|
| Class A-1-R notes
|
| Amount: | $281.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
|
|
| Class A-2-R notes
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| Amount: | $60.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B-R notes
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| Amount: | $21.1 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 250 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class C-R notes
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| Amount: | $28.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Rating: | Moody’s: Baa3 expected
|
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