Chicago, Jan. 12 – LCM Euro II LLC sold $389.45 million in a collateralized loan obligation being issued by LCM 40 Ltd., according to a presale report and a press release.
The notes will mature on January 2036.
The CLO consists of $256 million of class A senior floating-rate notes at SOFR plus 220 basis points, $34.25 million of class B-1 senior floating-rate notes at SOFR plus 300 bps, $13.75 million of class B-2 6.96% senior fixed-rate notes, $21 million of class C deferrable mezzanine floating-rate notes at SOFR plus 400 bps, $17 million of class D-1 deferrable mezzanine floating-rate notes at SOFR plus 584 bps, $7 million of class D-2 deferrable mezzanine floating-rate notes at SOFR plus 694 bps, $11 million of class E deferrable mezzanine floating-rate notes at SOFR plus 815 bps and $29.45 million of subordinated notes.
LCM Euro II LLC will manage the collateral through the end of the reinvestment period in January 2028.
Collateral for the notes consists of non-investment-grade broadly syndicated loans.
The notes can be called starting in December 2024.
Citigroup Global Markets Inc. was the placement agent.
The New York City-based asset management firm is an affiliated of LCM Asset Management LLC.
Issuer: | LCM 40 Ltd.
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Issue: | Floating-rate notes, fixed-rate notes and subordinated notes
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Amount: | $389.45 million
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Maturity: | January 2036
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Structure: | Cash flow CLO
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Placement agent: | Citigroup Global Markets Inc.
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Manager: | LCM Euro II LLC
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Call feature: | December 2024
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Settlement date: | Dec. 16
|
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Class A notes
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Amount: | $256 million
|
Securities: | Senior floating-rate notes
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Coupon: | SOFR plus 220 bps
|
Rating: | Moody's: Aaa
|
|
Class B-1 notes
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Amount: | $34.25 million
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Securities: | Senior floating-rate notes
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Coupon: | SOFR plus 300 bps
|
Rating: | Fitch: AA
|
|
Class B-2 notes
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Amount: | $13.75 million
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Securities: | Senior fixed-rate notes
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Coupon: | 6.96%
|
Rating: | Fitch: AA
|
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Class C notes
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Amount: | $21 million
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Securities: | Deferrable mezzanine floating-rate notes
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Coupon: | SOFR plus 400 bps
|
Rating: | Fitch: A
|
|
Class D-1 notes
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Amount: | $17 million
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Securities: | Deferrable mezzanine floating-rate notes
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Coupon: | SOFR plus 584 bps
|
Rating: | Fitch: BBB+
|
|
Class D-2 notes
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Amount: | $7 million
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Securities: | Deferrable mezzanine floating-rate notes
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Coupon: | SOFR plus 694 bps
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Rating: | Fitch: BBB-
|
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Class E notes
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Amount: | $11 million
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Securities: | Deferrable mezzanine floating-rate notes
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Coupon: | SOFR plus 815 bps
|
Rating: | Fitch: BB-
|
|
Subordinated notes
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Amount: | $29.45 million
|
Securities: | Subordinated notes
|
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