By Cristal Cody
Tupelo, Miss., April 4 - 40|86 Advisors, Inc., a subsidiary of CNO Financial Group, Inc., announced on Thursday that it closed on a $413.25 million collateralized loan obligation of notes due April 2024 by Cedar Creek CLO, Ltd./Cedar Creek CLO LLC.
According to a market source, the sale included $264 million of class A senior secured floating-rate notes (Aaa/AAA/) priced at Libor plus 110 basis points; $35 million of class B floating-rate notes (/AA/) at Libor plus 175 bps; $37.4 million of class C deferrable floating-rate notes (/A/) at Libor plus 260 bps; $16.2 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 340 bps; $17 million of class E deferrable floating-rate notes (/BB/) at Libor plus 525 bps and $2 million of class F deferrable floating-rate notes (/B-/) at Libor plus 550 bps. The offering also included a $10.2 million class A subordinated tranche and a $31.45 million class B subordinated tranche.
Goldman Sachs & Co. was the placement agent.
The CLO has a four-year reinvestment period and a two-year non-call period.
40|86 Advisors, which manages four CLOs representing $1.27 billion, will act as collateral manager.
The CLO securitization is backed by a revolving pool of broadly syndicated senior secured loans to corporate borrowers.
Cedar Creek CLO is a managed cash flow CLO.
| Issuer: | Cedar Creek CLO, Ltd./Cedar Creek CLO LLC
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| Amount: | $413.25 million
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| Maturity: | April 2024
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| Securities: | Floating-rate and subordinated notes
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| Structure: | Cash flow CLO
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| Placement agent: Goldman Sachs & Co.
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| Manager: | 40|86 Advisors, Inc.
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| Call feature: | Non-callable for two years
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| Settlement date: | March 28
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| Class A notes
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| Amount: | $264 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 110 bps
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| Ratings: | Moody's: Aaa
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| Standard & Poor's: AAA
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| Class B notes
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| Amount: | $35 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 175 bps
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| Ratings: | Standard & Poor's: AA
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| Class C notes
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| Amount: | $37.4 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 260 bps
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| Ratings: | Standard & Poor's: A
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| Class D notes
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| Amount: | $16.2 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 340 bps
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| Ratings: | Standard & Poor's: BBB
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| Class E notes
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| Amount: | $17 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 525 bps
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| Ratings: | Standard & Poor's: BB
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| Class F notes
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| Amount: | $2 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 550 bps
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| Ratings: | Standard & Poor's: B-
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| Class A subordinated notes
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| Amount: | $10.2 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
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| Class B subordinated notes
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| Amount: | $31.45 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
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