By Cristal Cody
Eureka Springs, Ark., March 29 – Invesco Senior Secured Management, Inc. priced $406.25 million of notes due April 20, 2028 in the firm’s first collateralized loan obligation transaction of the year, according to a market source.
Upland CLO, Ltd./Upland CLO, LLC sold $235 million of class A-1A floating-rate notes at Libor plus 160 basis points, $25 million of 2.99% class A-1B fixed-rate notes, $21 million of class A-2A floating-rate notes at Libor plus 240 bps and $26 million of 3.95% class A-2B fixed-rate notes.
The CLO also priced $10 million of class B-1 floating-rate notes at Libor plus 345 bps, $8.5 million of 5% class B-2 fixed-rate notes, $26 million of class C floating-rate notes at Libor plus 435 bps, $16.5 million of class D floating-rate notes at Libor plus 825 bps and $38.25 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
Invesco will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The offering is collateralized primarily by first-lien senior secured loans.
Proceeds from the transaction will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.
Invesco Senior Secured Management, a subsidiary of Atlanta-based Invesco, Ltd., was in the primary market in 2015 with two CLO deals.
| Issuer: | Upland CLO, Ltd./Upland CLO, LLC
|
| Amount: | $406.25 million
|
| Maturity: | April 20, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Invesco Senior Secured Management, Inc.
|
| Call feature: | Two years
|
| Pricing date: | March 29
|
| Settlement date: | May 3
|
| Distribution: | Rule 144A
|
|
|
| Class A-1A notes
|
| Amount: | $235 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.99%
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2A notes
|
| Amount: | $21 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Non-rated
|
|
|
| Class A-2B notes
|
| Amount: | $26 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.95%
|
| Ratings: | Non-rated
|
|
|
| Class B-1 notes
|
| Amount: | $10 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 345 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $8.5 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 5%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $26 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 435 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $16.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 825 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $38.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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