By Cristal Cody
Tupelo, Miss., Nov. 1 – Golub Capital BDC, Inc. priced $602.4 million of notes due in January 2031 in the Golub Capital BDC CLO III LLC transaction, according to a news release on Thursday.
The CLO priced $327 million of class A floating-rate notes at par to yield Libor plus 148 basis points; $61.2 million of class B floating-rate notes at par to yield Libor plus 210 bps; $20 million of class C-1 floating-rate notes at par to yield Libor plus 280 bps; $38.8 million of class C-2 floating-rate notes at 99 and a coupon of Libor plus 265 bps; $42 million of class D floating-rate notes at 98.5 and a coupon of Libor plus 295 bps and $113.4 million of subordinated notes.
The reinvestment period ends in January 2023.
The company said it will retain the class C-2 notes, class D notes and subordinated notes through a consolidated subsidiary.
The debt securitization is expected to be 75% to 90% funded at closing with assets that currently secure the company’s $300 million revolving credit facility with Morgan Stanley Bank, NA. and other assets from the company’s balance sheet.
The CLO manager is an affiliate of middle market lender Golub Capital.
Golub Capital has priced one broadly syndicated CLO and three new middle-market CLOs year to date.
In 2017, the New York-based company priced two new middle-market CLOs.
| Issuer: | Golub Capital BDC CLO III LLC
|
| Amount: | $602.4 million
|
| Securities: | Floating-rate and subordinated notes
|
| Maturity: | January 2031
|
| Structure: | Middle-market CLO
|
| Manager: | Golub Capital BDC, Inc.
|
| Pricing date: | Nov. 1
|
| Settlement date: | Nov. 16
|
|
|
| Class A notes
|
| Amount: | $327 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 148 bps
|
| Price: | Par
|
| Ratings: | S&P: AAA expected
|
| Fitch: AAA expected
|
|
|
| Class B notes
|
| Amount: | $61.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Price: | Par
|
| Rating: | S&P: AA expected
|
|
|
| Class C-1 notes
|
| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Price: | Par
|
| Rating: | S&P: A expected
|
|
|
| Class C-2 notes
|
| Amount: | $38.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Price: | 99
|
| Rating: | S&P: A expected
|
|
|
| Class D notes
|
| Amount: | $42 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 295 bps
|
| Price: | 98.5
|
| Rating: | S&P: A expected
|
|
|
| Equity
|
| Amount: | $113.4 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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