By Cristal Cody
Tupelo, Miss., June 5 – Octagon Credit Investors, LLC priced $560.96 million of notes due July 20, 2030 in the new Octagon Investment Partners 31, Ltd./Octagon Investment Partners 31, LLC transaction, according to a market source.
The CLO sold $356.4 million of class A floating-rate notes at Libor plus 121 basis points; $44.55 million of class B-1 floating-rate notes at Libor plus 170 bps; $13.2 million of 3.729% class B-2 fixed-rate notes; $38.5 million of class C floating-rate notes at Libor plus 240 bps; $31.35 million of class D floating-rate notes at Libor plus 370 bps; $22 million of class E floating-rate notes at Libor plus 630 bps; $11 million of class F floating-rate notes at Libor plus 820 bps and $43.96 million of subordinated notes.
Wells Fargo Securities LLC arranged the offering.
Octagon Credit Investors will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $550 million of mostly senior secured leveraged loans.
The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Octagon Credit Investors has priced one new CLO and refinanced five vintage CLOs year to date.
The CLO manager priced three new CLOs and refinanced one CLO in 2016.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners 31, Ltd./Octagon Investment Partners 31, LLC
|
| Amount: | $560.96 million
|
| Maturity: | July 20, 2030
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | Two years
|
| Pricing date: | June 1
|
| Settlement date: | June 29
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $356.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 121 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $44.55 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $13.2 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.729%
|
| Rating: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $38.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $31.35 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $22 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 630 bps
|
| Rating: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $11 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 820 bps
|
| Rating: | Non-rated
|
|
|
| Equity
|
| Amount: | $43.96 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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