By Rebecca Melvin
New York, Sept. 27 – Mackay Shields Investment Management Ltd. sold €358.8 million of notes due 2032 in the Mackay Shields CLO-1 DAC transaction, according to a market source on Friday.
The CLO priced €217 million of class A senior secured floating-rate notes at Euribor plus 93 basis points; €35 million of class B senior secured floating-rate notes at Euribor plus 180 bps; €21 million of class C secured deferrable floating-rate notes at Euribor plus 260 bps; €24.5 million of class D secured deferrable floating-rate notes at Euribor plus 410 bps; €17.5 million of class E secured deferrable floating-rate notes at Euribor plus 655 bps; €9.5 million of class F secured deferrable floating-rate notes at Euribor plus 906 bps and €34.3 million of subordinated notes.
JPMorgan was the initial purchaser of the offering.
Mackay Shields Europe Investment Management Ltd. will manage the CLO.
The notes are backed primarily by euro-denominated senior secured loans and bonds.
Proceeds will be used to purchase a €350 million portfolio of mostly European leveraged loans and bonds.
Mackay Shields is a New York-based investment company. This transaction is its first CLO.
| Issuer: | Mackay Shields CLO-1 DAC
|
| Amount: | €358.8 million
|
| Maturity: | October 2032
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | JPMorgan
|
| Manager: | Mackay Shields Europe Investment Management Ltd.
|
| Settlement date: | Nov. 19
|
|
|
| Class A notes
|
| Amount: | €217 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 93 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | €35 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 180 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | €21 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 260 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | €24.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 410 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | €17.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 655 bps
|
| Rating: | Moody’s: Ba2
|
|
|
| Class F notes
|
| Amount: | €9.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 906 bps
|
| Rating: | Moody’s: B2
|
|
|
| Equity
|
| Amount: | €34.3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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