By Cristal Cody
Tupelo, Miss., Nov. 3 – Morgan Stanley Investment Management Inc. subsidiary MS 522 CLO Manager LLC priced $404 million of notes due Oct. 23, 2033 in the 522 Funding CLO 2020-6 Ltd./522 Funding CLO 2020-6 LLC transaction that closed on Tuesday, according to market sources.
The CLO sold $256 million of class A floating-rate notes at Libor plus 134 basis points and $48 million of class B floating-rate notes at Libor plus 180 bps.
522 Funding CLO also priced $26 million of class C deferrable floating-rate notes at Libor plus 250 bps, $22 million of class D deferrable floating-rate notes at Libor plus 385 bps, $12 million of class E deferrable floating-rate notes at Libor plus 733 bps and $40 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
MS 522 CLO Manager will manage the CLO.
The CLO has a one-year non-call period and a three-year reinvestment period.
The offering is backed primarily by broadly syndicated first-lien senior secured loans.
The deal is the company’s first CLO of 2020.
Morgan Stanley Investment Management is a New York-based capital manager and subsidiary of financial products and services company Morgan Stanley.
Issuer: | 522 Funding CLO 2020-6 Ltd./522 Funding CLO 2020-6 LLC
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Amount: | $404 million
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Maturity: | Oct. 23, 2033
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Securities: | Floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | Morgan Stanley & Co. LLC
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Manager: | MS 522 CLO Manager LLC
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Call feature: | One year
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Settlement date: | Nov. 3
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Class A notes
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Amount: | $256 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 134 bps
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Ratings: | S&P: AAA
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Class B notes
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Amount: | $48 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 180 bps
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Ratings: | S&P: AA
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Class C notes
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Amount: | $26 million
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Securities: | Deferrable floating-rate notes
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Coupon: | Libor plus 250 bps
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Ratings: | S&P: A
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Class D notes
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Amount: | $22 million
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Securities: | Deferrable floating-rate notes
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Coupon: | Libor plus 385 bps
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Ratings: | S&P: BBB-
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Class E notes
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Amount: | $12 million
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Securities: | Deferrable floating-rate notes
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Coupon: | Libor plus 733 bps
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Ratings: | S&P: BB-
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Equity
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Amount: | $40 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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