By Cristal Cody
Tupelo, Miss., May 14 – MP CLO Management LLC refinanced $381.95 million of notes due Oct. 28, 2027 from a 2015 vintage collateralized loan obligation deal, according to a market source, a notice of executed second supplemental indenture and a news release from Marble Point Loan Financing Ltd.
MP CLO VIII, Ltd./MP CLO VIII, LLC, originally named ACAS CLO 2015-2, Ltd./ACAS CLO 2015-2 LLC, priced $325 million of class A-R senior secured floating-rate notes at Libor plus 91 basis points; $40.5 million of class B-R senior secured floating-rate notes at Libor plus 142 bps; $42 million of class C-R senior secured deferrable floating-rate notes at Libor plus 190 bps; $27.5 million of class D-R senior secured deferrable floating-rate notes at Libor plus 270 bps and $25 million of class E-R senior secured deferrable floating-rate notes at Libor plus 545 bps.
Morgan Stanley & Co. LLC was the refinancing agent.
MP CLO Management, formerly known as American Capital CLO Management, LLC, is the CLO manager.
ACAS CLO 2015-2 CLO originally was issued Aug. 26, 2015 and priced $225 million of class A senior secured floating-rate notes at Libor plus 150 bps. The class A notes had a principal balance of $225 million but could be increased up to $325 million with a conversion option.
The CLO also had priced $100 million of class A senior secured loans at Libor plus 150 bps; $40.5 million of class B senior secured floating-rate notes at Libor plus 225 bps; $42 million of class C senior secured deferrable floating-rate notes at Libor plus 305 bps; $27.5 million of class D senior secured deferrable floating-rate notes at Libor plus 375 bps; $25 million of class E senior secured deferrable floating-rate notes at Libor plus 590 bps and $50 million of subordinated notes.
Marble Point Loan Financing said the refinancing transaction lowered the borrowing costs of the CLO by reducing its weighted average cost of debt by 68 bps – to Libor plus 140 bps from Libor plus 208 bps.
Proceeds from the deal were used to redeem the original notes and class A loans.
MP CLO Management is a subsidiary of Greenwich, Conn.-based Marble Point Credit Management LLC, which is the investment manager of Marble Point Loan Financing.
| Issuer: | MP CLO VIII, Ltd./MP CLO VIII, LLC
|
| Amount: | $460 million refinancing
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| Maturity: | Oct. 28, 2027
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| Securities: | Global floating-rate notes
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| Structure: | Cash flow CLO
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| Refinancing agent: | Morgan Stanley & Co. LLC
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| Manager: | MP CLO Management LLC
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| Notice date: | April 30
|
| Settlement date: | May 11
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $325 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 91 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-R notes
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| Amount: | $40.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 142 bps
|
| Rating: | Moody’s: Aa1
|
|
|
| Class C-R notes
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| Amount: | $42 million
|
| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
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| Amount: | $27.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 270 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-R notes
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| Amount: | $25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 545 bps
|
| Rating: | Moody’s: Ba3
|
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