Chicago, Nov. 17 – MSD Partners LP is issuing its first collateralized loan obligation for $586.3 million from MSD BDC CLO I LLC, according to a presale report.
The notes will mature on Oct. 15, 2035.
The CLO consists of $336 million of class A senior secured floating-rate notes at SOFR plus 270 basis points, $54 million of class B senior secured floating-rate notes at SOFR plus 365 bps, $36 million of class C senior secured deferrable floating-rate notes at SOFR plus 400 bps and $160.3 million of preferred shares.
MSD Partners LP will manage the collateral through the end of the reinvestment period on Oct. 15, 2027.
Collateral for the notes consists of middle-market speculative-grade senior secured term loans.
The notes can be called starting Oct. 15, 2025.
Deutsche Bank Securities Inc. was the placement agent.
MSD Partners deploys capital on behalf of Dell Technologies founder and chief executive officer Michael Dell and his family, as well as other like-minded, long-term-oriented investors.
| Issuer: | MSD BDC CLO I LLC
|
| Issue: | Floating-rate notes and preferred shares
|
| Amount: | $586.3 million
|
| Maturity: | Oct. 15, 2035
|
| Structure: | Cash flow CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | MSD Partners LP
|
| Call feature: | Oct. 15, 2025
|
| Pricing date: | Nov. 13
|
| Settlement date: | Nov. 15
|
|
|
| Class A notes
|
| Amount: | $336 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 270 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B notes
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| Amount: | $54 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 365 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
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| Amount: | $36 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 400 bps
|
| Rating: | S&P: A
|
|
|
| Preferred shares
|
| Amount: | $160.3 million
|
| Securities: | Preferred shares
|
|
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