By Cady Vishniac
Detroit, Jan. 6 – TCI Capital Management II, LLC is refinancing with $413.5 million of notes due Jan. 17, 2032 in the TCI-Flatiron CLO 2016-1 Ltd./TCI-Flatiron CLO 2016-1 LLC transaction, according to a market source.
The CLO priced $1 million of class X floating-rate notes at Libor plus 75 basis points; $256 million of class A-R-2 floating-rate notes at Libor plus 115 bps; $46 million of class B-R-2 floating-rate notes at Libor plus 160 bps; $22 million of class C-R-2 deferrable floating-rate notes at Libor plus 220 bps; $24 million of class D-R-2 deferrable floating-rate notes at Libor plus 360 bps, $16 million of class E-R-2 deferrable floating-rate notes at Libor plus 700 bps and $48.5 million of subordinated notes.
Merrill Lynch, Pierce, Fenner & Smith Inc. arranged the offering.
TCI Capital is the collateral manager.
The CLO, collateralized primarily by broadly syndicated speculative-grade senior secured term loans, will have a one-year non-call period and a two-year reinvestment period.
This is TCI Capital’s first CLO issue in 2021.
TCI Capital is a subsidiary of Saint Peter Port, Guernsey-based closed-ended investment company Tetragon Financial Group Ltd. and an affiliate of LCM Asset Management LLC.
| Issuer: | TCI-Flatiron CLO 2016-1 Ltd./TCI-Flatiron CLO 2016-1 LLC
|
| Amount: | $413.5 million
|
| Maturity: | Jan. 17, 2032
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Manager: | TCI Capital Management, LLC
|
| Call feature: | 2022
|
| Settlement date: | Jan. 8
|
|
|
| Class X notes
|
| Amount: | $1 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 75 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-R-2 notes
|
| Amount: | $256 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 115 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R-2 notes
|
| Amount: | $46 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R-2 notes
|
| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R-2 notes
|
| Amount: | $24 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Rating: | S&P: BB-
|
|
|
| Class E-R-2 notes
|
| Amount: | $16 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Rating: | S&P: BBB-
|
|
|
| Equity
|
| Amount: | $48.5 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
