By Cristal Cody
Tupelo, Miss., April 26 – Crestline Denali Capital, LP priced $360.61 million of notes in a refinancing and reset of a vintage 2016 collateralized loan obligation offering, according to a market source and a company press release on Thursday.
Denali Capital CLO XII, Ltd./Denali Capital CLO XII LLC sold $1.35 million of class X amortizing senior secured floating-rate notes at Libor plus 55 basis points, $209 million of class A-1R senior secured floating-rate notes at Libor plus 105 bps, $15 million of 3.851% class A-2R senior secured fixed-rate notes and $42 million of class B-R senior secured floating-rate notes at Libor plus 160 bps in the senior tranches.
The CLO also sold $21 million of class C-R senior secured deferrable floating-rate notes; $19.25 million of class D-R senior secured deferrable floating-rate notes; $15.75 million of class E-R senior secured deferrable floating-rate notes and $37.26 million of subordinated notes.
Crestline Denali said the refinancing substantially lowered the fund's borrowing costs and also established new portfolio criteria more in line with current syndicated loan market conditions. The CLO remains compliant with both U.S. and European risk retention regulations.
BNP Paribas Securities Corp. arranged the deal.
The maturity on the notes was extended to April 15, 2031 from the original April 15, 2028 maturity.
The reset CLO has an extended five-year reinvestment period.
The original $358.84 million Denali Capital CLO XII vehicle was issued March 30, 2016. The CLO had sold $192.25 million of class A-1 floating-rate notes at Libor plus 155 bps; $30 million of 3% class A-2 fixed-rate notes; $20 million of class B-1 floating-rate notes at Libor plus 245 bps; $20 million of class B-1L loans at Libor plus 245 bps; $2.88 million of 3.91% class B-2 fixed-rate notes; $20.35 million of class C floating-rate notes at Libor plus 345 bps; $19 million of class D floating-rate notes at Libor plus 465 bps; $17.5 million of class E floating-rate notes at Libor plus 775 bps and $36.86 million of subordinated notes.
Proceeds will be used to redeem the original notes.
The deal is backed primarily by first-lien senior secured loans.
Crestline Denali priced one new CLO and refinanced one vintage CLO in 2017.
The asset management firm is based in Oak Brook, Ill.
| Issuer: | Denali Capital CLO XII, Ltd./Denali Capital CLO XII LLC
|
| Amount: | $360.61 million refinancing
|
| Maturity: | April 15, 2031
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BNP Paribas Securities Corp.
|
| Manager: | Crestline Denali Capital, LP
|
| Settlement date: | April 25
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $1.35 million
|
| Securities: | Amortizing senior secured floating-rate notes
|
| Coupon: | Libor plus 55 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1R notes
|
| Amount: | $209 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 105 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2R notes
|
| Amount: | $15 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.851%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $42 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $21 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
|
| Amount: | $19.25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-R notes
|
| Amount: | $15.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $37.26 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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