By Cristal Cody
Tupelo, Miss., March 18 – Barings LLC sold $508.05 million of notes due April 15, 2031 on Friday in a reissue of a vintage 2016 collateralized loan obligation offering called Barings CLO Ltd. 2016-III, according to a market source.
The renamed Barings CLO Ltd. 2019-II/Barings CLO Ltd. 2019-II LLC vehicle priced $298.75 million of class A-1A senior secured floating-rate notes at Libor plus 135 basis points; $25 million of class A-1B senior secured floating-rate notes at Libor plus 170 bps, $50 million of class A-2 senior secured floating-rate notes at Libor plus 195 bps, $33.75 million of class B senior secured deferrable floating-rate notes at Libor plus 285 bps, $28.75 million of class C secured deferrable floating-rate notes at Libor plus 395 bps, $20 million of class D secured deferrable floating-rate notes at Libor plus 680 bps and $51.8 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
The reissued CLO has a two-year non-call period and a five-year reinvestment period.
The original $512.3 million offering of notes due Jan. 15, 2028 was issued Dec. 8, 2016. In that deal, the CLO had priced $310 million of class A-1 senior secured floating-rate notes at Libor plus 143 bps; $62.5 million of class A-2 senior secured floating-rate notes at Libor plus 190 bps; $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 CLO is backed primarily by broadly syndicated senior secured loans.
In 2018, Barings priced four new CLOs.
The Charlotte, N.C.-based CLO manager is a subsidiary of Massachusetts Mutual Life Insurance Co.
| Issuer: | Barings CLO Ltd. 2019-II/Barings CLO Ltd. 2019-II LLC
|
| Amount: | $508.05 million
|
| Maturity: | April 15, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Barings LLC
|
| Call feature: | Two years
|
| Pricing date: | March 15
|
| Settlement date: | April 3
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1A notes
|
| Amount: | $298.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: Non-rated
|
|
|
| Class A-2 notes
|
| Amount: | $50 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Ratings: | Moody’s: Non-rated
|
| S&P: AA
|
|
|
| Class B notes
|
| Amount: | $33.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 285 bps
|
| Ratings: | Moody’s: Non-rated
|
| S&P: A
|
|
|
| Class C notes
|
| Amount: | $28.75 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 395 bps
|
| Ratings: | Moody’s: Non-rated
|
| S&P: BBB-
|
|
|
| Class D notes
|
| Amount: | $20 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 680 bps
|
| Ratings: | Moody’s: Ba3
|
| S&P: Non-rated
|
|
|
| Equity
|
| Amount: | $51.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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