By Cristal Cody
Tupelo, Miss., Feb. 10 – Guggenheim Partners Investment Management, LLC raised $846.1 million in a collateralized loan obligation offering of notes due Feb. 25, 2027, according to a market source.
NZCG Funding Ltd./NZCG Funding LLC sold $514 million of class A-1 floating-rate notes at Libor plus 177 basis points; $82.6 million of class A-2 floating-rate notes at Libor plus 275 bps; $49.7 million of class B floating-rate notes at Libor plus 350 bps; $46.5 million of class C floating-rate notes at Libor plus 410 bps; $51.4 million of class D floating-rate notes at Libor plus 565 bps and $101.9 million of preferred securities.
Citigroup Global Markets Inc. was the placement agent.
Guggenheim will manage the CLO, which has a four-year reinvestment period that may be extended for up to five years.
The CLO is non-callable for two years.
The transaction is backed mainly by first lien senior secured loans.
Proceeds from the deal will be used to purchase collateral to reach a target portfolio of about $845 million of primarily senior secured leveraged loans.
Guggenheim, a New York- and Chicago-based investment management firm, brought two CLO transactions in 2014.
Issuer: | NZCG Funding Ltd./NZCG Funding LLC
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Amount: | $846.1 million
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Maturity: | Feb. 25, 2027
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Securities: | Floating-rate notes and preferred securities
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Structure: | Cash flow CLO
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Placement agent: Citigroup Global Markets Inc.
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Manager: | Guggenheim Partners Investment Management, LLC
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Call feature: | Two years
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Pricing date: | Jan. 30
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Settlement date: | Feb. 25
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Class A-1 notes
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Amount: | $514 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 177 bps
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Ratings: | Moody’s: Aaa Expected
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| Fitch: AAA
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Class A-2 notes
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Amount: | $82.6 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 275 bps
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Ratings: | Moody’s: Aa2 Expected
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Class B notes
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Amount: | $49.7 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 350 bps
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Ratings: | Moody’s: A2 Expected
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Class C notes
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Amount: | $46.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 410 bps
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Ratings: | Moody’s: Baa3 Expected
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Class D notes
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Amount: | $51.4 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 565 bps
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Ratings: | Moody’s: Ba3 Expected
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Equity tranche
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Amount: | $101.9 million
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Securities: | Preferred securities
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Ratings: | Non-rated
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