By Cristal Cody
Tupelo, Miss., Oct. 16 – ArrowMark Colorado Holdings LLC sold $326.1 million of notes in a refinancing and reset of a 2016 broadly syndicated collateralized loan obligation deal that closed on Monday, according to a market source and a notice of executed second supplemental indenture.
Elevation CLO 2016-5, Ltd./Elevation CLO 2016-5, LLC priced $4.1 million of class X senior secured floating-rate notes at Libor plus 80 basis points, $224 million of class A-R senior secured floating-rate notes at Libor plus 123 bps and $40.6 million of class B-R senior secured floating-rate notes at Libor plus 190 bps.
The CLO also sold $16.45 million of class C-R secured deferrable floating-rate notes at Libor plus 240 bps, $21.35 million of class D-R secured deferrable floating-rate notes at Libor plus 355 bps and $19.6 million of class E-R secured deferrable floating-rate notes at Libor plus 635 bps.
Goldman Sachs & Co. LLC was the refinancing placement agent.
ArrowMark Colorado Holdings will manage the CLO.
The maturity on the notes was extended by three years to Oct. 27, 2031.
The reset CLO has a two-year non-call period and a five-year reinvestment period.
The original CLO, then named Arrowpoint CLO 2016-5 Ltd./Arrowpoint CLO 2016-5 LLC, was issued June 28, 2016.
In that offering, the CLO had priced $224 million of class A floating-rate notes at Libor plus 172 bps; $38.5 million of class B floating-rate notes at Libor plus 230 bps; $21 million of class C floating-rate notes at Libor plus 325 bps; $20.3 million of class D floating-rate notes at Libor plus 465 bps and $18.2 million of class E floating-rate notes at Libor plus 695 bps. The deal also included two equity tranches of $17.5 million of class S subordinated notes and $15 million of class J subordinated notes.
Proceeds will be used to redeem the original notes. The subordinated notes will remain outstanding.
The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.
ArrowMark Colorado Holdings is an investment management firm based in Denver.
| Issuer: | Elevation CLO 2016-5, Ltd./Elevation CLO 2016-5, LLC
|
| Amount: | $326.1 million refinancing
|
| Maturity: | Oct. 27, 2031
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Goldman Sachs & Co. LLC
|
| Manager: | ArrowMark Colorado Holdings LLC
|
| Call feature: | Two years
|
| Pricing date: | Sept. 20
|
| Settlement date: | Oct. 15
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $4.1 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 90 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-R notes
|
| Amount: | $224 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 123 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B-R notes
|
| Amount: | $40.6 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $16.45 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
|
| Amount: | $21.35 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 355 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-R notes
|
| Amount: | $19.6 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 635 bps
|
| Rating: | Moody’s: Ba3
|
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