By Cristal Cody
Tupelo, Miss., July 16 – EFJ Capital LLC priced $273.4 million of notes in four tranches in a static collateralized debt obligation, according to market sources.
TruPS Financials Note Securitization 2020-1/TruPS Financials Note Securitization 2020-1 LLC sold $169.7 million of 3.5% class A-1 senior secured fixed-to-floating-rate notes (Aa2), $19.8 million of 4% class A-2 mezzanine deferrable fixed-to-floating-rate notes (A3), $22.7 million of 5.5% class B mezzanine deferrable fixed-to-floating-rate notes (Baa3) and $61.2 million of preferred shares.
The rate on the notes will reset July 15, 2025 to a floating rate. The class A-1 notes will reset to Libor plus 300 bps, the class A-2 notes will reset to Libor plus 400 bps and the class B notes will reset to Libor plus 500 bps.
BofA Securities, Inc. was the placement agent.
EFJ CDO Manager LLC will manage the CLO.
The notes are due April 16, 2040.
The CDO has a two-year non-call period.
The issue is backed by a portfolio of trust preferred securities, subordinated debt, senior notes and surplus notes issued by U.S. community banks and insurance companies.
EFJ Capital is an Arlington, Va.-based alternative asset manager.
Issuer: | TruPS Financials Note Securitization 2020-1/TruPS Financials Note Securitization 2020-1 LLC
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Amount: | $273.4 million
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Maturity: | April 16, 2040
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Securities: | Fixed-to-floating-rate notes and preferred shares
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Structure: | Static cash flow CDO
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Placement agent: | BofA Securities, Inc.
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Manager: | EFJ CDO Manager LLC
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Call feature: | Two years
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Settlement date: | Aug. 5
|
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Class A-1 notes
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Amount: | $169.7 million
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Securities: | Senior secured fixed-to-floating-rate notes
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Coupon: | 3.5%; resets July 15, 2025 to Libor plus 300 bps
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Ratings: | Moody’s: Aa2
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| Kroll: AA
|
|
Class A-2 notes
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Amount: | $19.8 million
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Securities: | Mezzanine deferrable fixed-to-floating-rate notes
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Coupon: | 4.5%; resets July 15, 2025 to Libor plus 400 bps
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Ratings: | Moody’s: A3
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| Kroll: A-
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Class B notes
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Amount: | $22.7 million
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Securities: | Mezzanine deferrable fixed-to-floating-rate notes
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Coupon: | 5.5%; resets July 15, 2025 to Libor plus 500 bps
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Ratings: | Moody’s: Baa3
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| Kroll: BBB-
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Equity
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Amount: | $61.2 million
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Securities: | Preferred shares
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Ratings: | Non-rated
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