Chicago, March 3 – Sequoia Investment Management Co. Ltd. sold a $233.3 million broadly syndicated CLO with Sequoia Infrastructure Funding I Ltd./Sequoia Infrastructure Funding I LLC listed as issuers, according to a pre-sale report.
The notes, due April 15, 2031, include the $138 million of class A senior floating-rate notes at Libor plus 140 bps, $36.8 million of class B senior floating-rate notes at Libor plus 175 bps, $13.8 million of class C deferrable floating-rate notes at Libor plus 225 bps, $11.5 million of class D deferrable floating-rate notes at Libor plus 365 bps, $9.2 million of class E deferrable floating-rate notes at Libor plus 675 bps and $24 million of subordinated notes.
Goldman Sachs & Co. LLC is the placement agent.
Sequoia Investment Management will be the investment adviser. Collateral for the CLO is senior secured loans, cash and eligible investments. The loans are focused on infrastructure project finance. Most borrowers must be based in the United States.
Shinhan Alternative Investment Management Co. Ltd. will be the collateral manager.
This is the first partnership in a CLO transaction by Sequoia and Shinhan. Sequoia will purchase the loans during the post-pricing warehouse and post-closing ramp-up period and then once the deal is effective, the collateral portfolio will turn static. Therefore, there is no reinvestment period end date.
The notes can be called after April 15, 2022.
Sequoia is a specialist infrastructure debt investment management company based in London.
Shinhan is an equity fund management firm based in Korea.
| Issuers: | Sequoia Infrastructure Funding I Ltd./Sequoia Infrastructure Funding I LLC
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| Amount: | $233.3 million
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| Maturity: | April 15, 2031
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| Securities: | Floating-rate and subordinated notes
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| Structure: | Cash flow CLO
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| Placement agent: | Goldman Sachs & Co. LLC
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| Investment adviser: | Sequoia Investment Management Co. Ltd.
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| Manager: | Shinhan Alternative Investment Management Inc.
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| Call: | April 15, 2022
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| Pricing date: | March 3
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| Settlement date: | April 6
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|
|
| Class A notes
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| Amount: | $138 million
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| Securities: | Senior floating-rate notes
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| Coupon: | Libor plus 140 bps
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| Rating: | S&P: AAA
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|
|
| Class B notes
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| Amount: | $36.8 million
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| Securities: | Senior floating-rate notes
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| Coupon: | Libor plus 175 bps
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| Rating: | S&P: AA
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|
|
| Class C notes
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| Amount: | $13.8 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 225 bps
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| Rating: | S&P: A
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|
|
| Class D notes
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| Amount: | $11.5 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 365 bps
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| Rating: | S&P: BBB
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|
|
| Class E notes
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| Amount: | $9.2 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 675 bps
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| Rating: | S&P: BB-
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|
|
| Subordinated notes
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| Amount: | $24 million
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| Securities: | Subordinated notes
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