By Cristal Cody
Tupelo, Miss., Jan. 23 – Octagon Credit Investors, LLC priced $738,368,750 of notes in in a second refinancing of the 2014 vintage Octagon Investment Partners XXII, Ltd./Octagon Investment Partners XXII, LLC transaction, according to a market source and a notice of executed second supplemental indenture on Monday.
The CLO sold $8.5 million of class X-RR senior secured floating-rate notes at Libor plus 65 basis points; $424.4 million of class A-RR senior secured floating-rate notes at Libor plus 107 bps; $82.5 million of class B-RR senior secured floating-rate notes at Libor plus 145 bps; $62.6 million of class C-RR secured deferrable mezzanine floating-rate notes at Libor plus 190 bps; $37.5 million of class D-RR secured deferrable mezzanine floating-rate notes at Libor plus 275 bps; $31.9 million of class E-RR secured deferrable junior floating-rate notes at Libor plus 545 bps; $13.9 million of class F-RR secured deferrable junior floating-rate notes at Libor plus 775 bps and $63,168,750 of subordinated notes.
Morgan Stanley & Co. LLC was the refinancing placement agent.
Octagon Credit Investors will continue to manage the CLO.
The maturity on the reset CLO was extended to Jan. 22, 2030 from the original Nov. 25, 2025 maturity.
The reset CLO also has a new two-year non-call period and a five-year reinvestment period.
In the original $722.2 million transaction issued on Nov. 25, 2014, the CLO sold $4 million of class X senior secured floating-rate notes at Libor plus 100 bps, $424.5 million of class A senior secured notes at Libor plus 148 bps, $74.3 million of class B-1 senior secured floating-rate notes at Libor plus 255 bps and $18 million of class B-2 senior secured floating-rate notes at Libor plus 230 bps.
The CLO also priced $40.3 million of class C-1 secured deferrable notes at Libor plus 325 bps; $4 million of class C-2 secured floating-rate notes at Libor plus 350 bps; $13 million of 5.65% class C-3 secured deferrable fixed-rate notes; $32.3 million of class D-1 secured deferrable floating-rate notes at Libor plus 390 bps; $4 million of class D-2 secured deferrable floating-rate notes at Libor plus 458 bps; $30 million of class E-1 secured deferrable floating-rate notes at Libor plus 525 bps; $3.8 million of class E-2 secured deferrable floating-rate notes at Libor plus 675 bps; $14 million of class F secured deferrable floating-rate notes at Libor plus 630 bps and $60 million of subordinated notes.
The notes were refinanced on June 9, 2017.
Proceeds from the second refinancing were used to redeem the first refinanced notes.
In 2017, Octagon Credit Investors priced four new CLOs and refinanced notes from seven vintage CLOs.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners XXII, Ltd./Octagon Investment Partners XXII, LLC
|
| Amount: | $738,368,750 refinancing
|
| Maturity: | Jan. 22, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | Jan. 22, 2020
|
| Settlement date: | Jan. 22
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X-RR notes
|
| Amount: | $8.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-RR notes
|
| Amount: | $424.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 107 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-RR notes
|
| Amount: | $82.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-RR notes
|
| Amount: | $62.6 million
|
| Securities: | Secured deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | S&P: A
|
|
|
| Class D-RR notes
|
| Amount: | $37.5 million
|
| Securities: | Secured deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-RR notes
|
| Amount: | $31.9 million
|
| Securities: | Secured deferrable junior floating-rate notes
|
| Coupon: | Libor plus 545 bps
|
| Rating: | S&P: BB-
|
|
|
| Class F-RR notes
|
| Amount: | $13.9 million
|
| Securities: | Secured deferrable junior floating-rate notes
|
| Coupon: | Libor plus 775 bps
|
| Rating: | S&P: B-
|
|
|
| Equity
|
| Amount: | $63,168,750
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
