By Cristal Cody
Tupelo, Miss., Oct. 30 – Elmwood Asset Management LLC priced $506.75 million of notes due Oct. 15, 2032 in the Elmwood CLO III Ltd. broadly syndicated collateralized loan obligation transaction, according to market sources.
The CLO sold $265 million of class A-1 floating-rate notes at Libor plus 137 basis points; $55 million of 2.94% class A-2 fixed-rate notes and $60 million of class B floating-rate notes at Libor plus 195 bps.
Elmwood CLO sold $25.75 million of class C floating-rate notes at Libor plus 265 bps, $30 million of class D floating-rate notes at Libor plus 385 bps, $24.25 million of class E floating-rate notes at Libor plus 700 bps, $7.5 million of class F floating-rate notes at Libor plus 869 bps and $39.25 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The transaction is backed primarily by broadly syndicated first-lien senior secured loans.
The CLO manager has priced three new CLOs in 2019.
Elmwood Asset Management is a New York-based hedge fund created in 2018.
| Issuer: | Elmwood CLO III Ltd.
|
| Amount: | $506.75 million
|
| Maturity: | Oct. 15, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Elmwood Asset Management LLC
|
| Call feature: | Two years
|
| Pricing date: | Oct. 16
|
| Settlement date: | Nov. 20
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $265 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 137 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $55 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.94%
|
| Rating: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $60 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $25.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $24.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Ratings: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $7.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 869 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $39.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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