By Cristal Cody
Tupelo, Miss., May 1 – Redding Ridge Asset Management, LLC sold $856.75 million of notes due April 15, 2031 in a new broadly syndicated collateralized loan obligation transaction, according to market sources.
The RR 4 Ltd./RR 4 LLC deal priced with a AAA-rated weighted average spread of Libor plus 102 basis points, according to BofA Merrill Lynch data.
The deal included $5 million of class X floating-rate notes; $527 million of class A-1A floating-rate notes; $24 million of class A-1B floating-rate notes; $69.5 million of class A-2 notes; $77.5 million of class B deferrable floating-rate notes; $50 million of class C deferrable floating-rate notes; $34 million of class D deferrable floating-rate notes and $69.75 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The notes are collateralized primarily by broadly syndicated first-lien senior secured loans.
In 2017, Redding Ridge Asset Management priced two CLOs and refinanced one vintage CLO.
The New York City-based asset management company was established in 2016 by Apollo Global Management, LLC.
| Issuer: | RR 4 Ltd./RR 4 LLC
|
| Amount: | $856.75 million
|
| Maturity: | April 15, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Redding Ridge Asset Management, LLC
|
| Call feature: | Two years
|
| Weighted average AAA coupon: | Libor plus 102 bps
|
| Pricing date: | April 26
|
| Settlement date: | May 23
|
|
|
| Class X notes
|
| Amount: | $5 million
|
| Securities: | Floating-rate notes
|
| Rating | : | S&P: AAA
|
|
|
| Class A-1A notes
|
| Amount: | $527 million
|
| Securities: | Floating-rate notes
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Ratings: | S&P: Non-rated
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $69.5 million
|
| Securities: | Floating-rate notes
|
| Rating: | S&P: AA
|
|
|
| Class B notes
|
| Amount: | $77.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Rating: | S&P: A
|
|
|
| Class C notes
|
| Amount: | $50 million
|
| Securities: | Deferrable floating-rate notes
|
| Rating: | S&P: BBB-
|
|
|
| Class D notes
|
| Amount: | $34 million
|
| Securities: | Deferrable floating-rate notes
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $69.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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