By Cristal Cody
Eureka Springs, Ark., Oct. 31 – Barings LLC, formerly known as Babson Capital Management LLC, priced $512.3 million of notes due Jan. 15, 2028 in the Barings CLO Ltd. 2016-III transaction, according to a market source.
The CLO sold $310 million of class A-1 senior secured floating-rate notes at Libor plus 143 basis points and $62.5 million of class A-2 senior secured floating-rate notes at Libor plus 190 bps.
Barings priced $42.33 million of class B senior secured deferrable floating-rate notes at Libor plus 250 bps; $25 million of class C secured deferrable mezzanine floating-rate notes at Libor plus 395 bps; $20 million of class D secured deferrable mezzanine floating-rate notes at Libor plus 725 bps and $52.5 million of subordinated notes.
The deal was downsized from an initial $614.3 million offering.
Citigroup Global Markets Inc. was the underwriter.
Barings will manage the CLO.
The CLO is non-callable until Jan. 15, 2019. The reinvestment period ends Oct. 15, 2021.
The deal is backed primary by broadly syndicated first-lien senior secured corporate loans.
Charlotte, N.C.-based Barings is a subsidiary of Massachusetts Mutual Life Insurance Co.
| Issuer: | Barings CLO Ltd. 2016-III
|
| Amount: | $512.33 million
|
| Maturity: | Jan. 15, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Barings LLC
|
| Call feature: | Jan. 15, 2019
|
| Pricing date: | Oct. 28
|
| Settlement date: | Dec. 1
|
|
|
| Class A-1 notes
|
| Amount: | $310 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 143 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $62.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $42.33 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $25 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 395 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $20 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 725 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $52.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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