By Cristal Cody
Tupelo, Miss., Dec. 23 – First Eagle Private Credit LLC priced $333,256,000 of notes in the First Eagle Commercial Loan Funding 2016-1 LLC transaction, a refinancing and reset of the NewStar Commercial Loan Funding 2016-1 LLC vehicle, according to market sources.
The middle-market CLO sold $159.75 million of class A-1a-R floating-rate notes at Libor plus 169 basis points, $20 million of 3.353% class A-1b-R fixed-rate notes and $16.5 million of class A-2-R floating-rate notes at Libor plus 205 bps.
The AAA tranches priced with a weighted average spread of Libor plus 172 bps.
Further down the capital structure, the CLO sold $18.5 million of class B-R floating-rate notes at Libor plus 240 bps, $30.5 million of class C-R deferrable floating-rate notes at Libor plus 500 bps, $18.5 million of class D-R deferrable notes at Libor plus 500 bps, $18 million of class E-R deferrable floating-rate notes at Libor plus 775 bps and $51,506,000 of subordinated notes.
Wells Fargo Securities, LLC was the refinancing placement agent.
First Eagle Private Credit, which changed its name from NewStar Financial, LLC, will manage the CLO.
The maturity on the refinanced notes was extended to Jan. 25, 2032 from the original maturity of Feb. 25, 2028.
The reset CLO has a one-year non-call period and a two-year reinvestment period.
In the original $348,006,000 transaction issued March 2, 2016, the CLO sold $176.5 million of class A-1 senior secured floating-rate notes at Libor plus 230 bps and $20 million of 3.44% class A-2 senior secured fixed-rate notes.
The CLO also had priced $36.75 million of class B senior secured floating-rate notes at Libor plus 375 bps; $22.5 million of class C secured deferrable floating-rate notes at Libor plus 540 bps; $23.75 million of class D secured deferrable floating-rate notes at Libor plus 550 bps; $23 million of class E secured deferrable floating-rate notes at Libor plus 750 bps and $45,506,000 of membership interests.
Proceeds will be used to redeem the outstanding notes.
The middle-market CLO is backed primarily by small and medium enterprise loans.
Boston-based First Eagle Private Credit is an investment management company.
| Issuer: | First Eagle Commercial Loan Funding 2016-1 LLC
|
| Amount: | $333,256,000
|
| Maturity: | Jan. 25, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Middle-market CLO
|
| Refinancing agent: | Wells Fargo Securities, LLC
|
| Manager: | First Eagle Private Credit LLC
|
| Call feature: | One year
|
| Pricing date: | Dec. 17
|
| Settlement date: | Dec. 26
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1a-R notes
|
| Amount: | $159.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 169 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1b-R notes
|
| Amount: | $20 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.353%
|
| Rating: | S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $16.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $18.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $30.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $18.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $18 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 775 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $51,506,000
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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