By Cristal Cody
Tupelo, Miss., July 28 – Guggenheim Partners Investment Management LLC priced $600 million of notes due Aug. 10, 2029 in a new collateralized loan obligation offering, according to a market source.
Hempstead II CLO Ltd. sold $5 million class X senior secured floating-rate notes at Libor plus 100 basis points, $378 million of class A-1 senior secured floating-rate notes at Libor plus 133 bps and $61.5 million of class A-2 senior secured floating-rate notes at Libor plus 195 bps.
The CLO also priced $37.5 million of class B mezzanine secured deferrable floating-rate notes at Libor plus 275 bps; $38 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 380 bps; $35 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 680 bps and $45 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Guggenheim will manage the CLO.
The notes have a two-year non-call period and a four-year reinvestment period.
The deal is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.
Guggenheim has priced two new CLOs and refinanced one vintage CLO year to date.
The CLO manager priced three new CLOs and sold two add-ons to existing CLOs in 2016.
The investment management firm and subsidiary of Guggenheim Partners, LLC is based in Santa Monica, Calif.
| Issuer: | Hempstead II CLO Ltd.
|
| Amount: | $600 million
|
| Maturity: | Aug. 10, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Guggenheim Partners Investment Management LLC
|
| Call feature: | Two years
|
| Pricing date: | July 13
|
| Settlement date: | Aug. 10
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $378 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 133 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $61.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $37.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $38 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 380 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $35 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 680 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $45 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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