By Cristal Cody
Tupelo, Miss., June 1 – Barings LLC sold $758.9 million of notes due July 20, 2029 in the manager’s third new CLO offering of 2018, according to a market source.
Barings CLO Ltd. 2018-III/Barings CLO Ltd. 2018-III LLC priced $5 million of class X floating-rate notes at Libor plus 50 basis points, $420 million of class A-1 floating-rate notes at Libor plus 95 basis points and $35 million of class A-2 floating-rate notes at Libor plus 125 bps.
The CLO sold $56.5 million of class B-1 floating-rate notes at Libor plus 145 bps and $18.75 million of 4.48% class B-2 fixed-rate notes.
Barings CLO 2018-III also priced $42 million of class C deferrable floating-rate notes at Libor plus 190 bps; $43.75 million of class D deferrable floating-rate notes at Libor plus 290 bps; $26.25 million of class E deferrable floating-rate notes at Libor plus 575 bps; $12.25 million of class F deferrable floating-rate notes at Libor plus 736 bps and $99.4 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
The CLO has a one-year non-call period and a three-year reinvestment period.
The deal is backed mainly by broadly syndicated senior secured loans.
Barings has priced three CLOs year to date.
The Charlotte, N.C.-based CLO manager is a subsidiary of Massachusetts Mutual Life Insurance Co.
| Issuer: | Barings CLO Ltd. 2018-III/Barings CLO Ltd. 2018-III LLC
|
| Amount: | $758.9 million
|
| Maturity: | July 20, 2029
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Barings LLC
|
| Call feature: | July 20, 2019
|
| Pricing date: | May 18
|
| Settlement date: | June 14
|
|
|
| Class X notes
|
| Amount: | $5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 50 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $420 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 95 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $35 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Rating: | S&P: Non-rated
|
|
|
| Class B-1 notes
|
| Amount: | $56.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2 notes
|
| Amount: | $18.75 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.48%
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $42 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $43.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $26.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 575 bps
|
| Rating: | S&P: BB-
|
|
|
| Class F notes
|
| Amount: | $12.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 736 bps
|
| Rating: | S&P: B-
|
|
|
| Equity
|
| Amount: | $99.4 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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