MidOcean Credit Fund Management to refinance $368 million CLO VI

By Cristal Cody

Tupelo, Miss., April 30 – MidOcean Credit Fund Management LP plans to price $368 million of notes due Jan. 20, 2029 in a refinancing of a vintage 2016 broadly syndicated collateralized loan obligation transaction, according to a notice of proposed second supplemental indenture on Monday.

The MidOcean Credit CLO VI/MidOcean Credit CLO VI LLC deal includes $242 million of class A-R floating-rate notes (Aaa expected); $58 million of class B floating-rate notes (Aa2 expected); $26 million of class C floating-rate notes (A2 expected); $22 million of class D floating-rate notes (Baa3 expected) and $20 million of class E floating-rate notes (Ba3 expected).

The original $402.7 million transaction was priced Nov. 8, 2016 and issued Dec. 20, 2016 via Jefferies LLC.

The CLO sold $242 million of class A floating-rate notes at Libor plus 158 basis points; $58 million of class B floating-rate notes at Libor plus 223 bps; $26 million of class C floating-rate notes at Libor plus 315 bps; $22 million of class D floating-rate notes at Libor plus 480 bps; $20 million of class E floating-rate notes at Libor plus 870 bps and $34.7 million of income notes.

Proceeds will be used to redeem the outstanding notes. The equity tranche of income notes will remain outstanding.

The CLO manager is an affiliate of New York City-based private equity firm MidOcean Partners.

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