By Cristal Cody
Tupelo, Miss., July 1 – Fortress Investment Group LLC sold $390 million of notes due July 15, 2028 in a new static middle-market collateralized loan obligation transaction, according to market sources.
Fortress Credit Opportunities XIII CLO Ltd./Fortress Credit Opportunities XIII CLO LLC priced $220 million of class A floating-rate notes at Libor plus 225 basis points, $40 million of class B-1 floating-rate notes at Libor plus 275 bps and $10 million of 2.85% class B-2 fixed-rate notes.
The CLO also sold $20 million of class C deferrable floating-rate notes at Libor plus 400 bps, $28 million of class D deferrable floating-rate notes at Libor plus 405 bps and $72 million of subordinated notes.
Natixis Securities America LLC and GreensLedge Capital Markets LLC were the placement agents.
Fortress Investment subsidiary FCO XIII CLO CM LLC will manage the CLO, which has a one-year non-call period.
The deal is backed primarily by middle-market senior secured corporate loans.
The offering is the manager’s first transaction of the year, following two broadly syndicated CLO deals priced in 2019.
Fortress Investment Group is based in New York.
| Issuer: | Fortress Credit Opportunities XIII CLO Ltd./Fortress Credit Opportunities XIII CLO LLC
|
| Amount: | $390 million
|
| Maturity: | July 15, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Middle-market CLO
|
| Placement agents: | Natixis Securities America LLC and GreensLedge Capital Markets LLC
|
| Manager: | FCO XIII CLO CM LLC
|
| Call feature: | One year
|
| Pricing date: | June 29
|
| Settlement date: | July 9
|
|
|
| Class A notes
|
| Amount: | $220 million
|
| Securities: | Revolving floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $40 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2 notes
|
| Amount: | $10 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.85%
|
| Rating: | S&P: AA
|
|
|
| Class C notes
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| Amount: | $20 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
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| Amount: | $28 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 405 bps
|
| Rating: | S&P: BBB-
|
|
|
| Equity
|
| Amount: | $72 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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