By Cristal Cody
Tupelo, Miss., Sept. 18 - Garrison Capital Inc. announced on Wednesday that subsidiary Garrison Funding 2013-2, Ltd. priced a $350 million 10-year collateralized loan obligation deal in a private placement offering.
The CLO sold $50 million of class A-1R floating-rate notes (/Expected AAA/) at par to yield 190 basis points plus the cost of funds; $111.2 million of class A-1T floating-rate notes (/Expected AAA/) at 99.6 to yield Libor plus 180 bps; $24.2 million of class A-2 floating-rate notes (/Expected AA/) at 99.5 to yield Libor plus 340 bps; $25 million of class B floating-rate notes (/Expected A/) at 99.5 to yield Libor plus 465 bps and $139.6 million of subordinated notes, according to the news release.
Garrison Capital will indirectly retain the equity tranche and $22 million of the class A-1T notes.
The reinvestment period on the CLO ends in September 2016.
Additional deal details were not immediately available.
Garrison Capital, a New York-based business development company that primarily invests in loans to U.S.-based middle-market companies, will use the proceeds to refinance the company's existing credit facility.
| Issuer: | Garrison Funding 2013-2, Ltd.
|
| Amount: | $350 million
|
| Maturity: | September 2023
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash-flow CLO
|
| Distribution: | Private placement
|
|
|
| Class A-1R
|
| Amount: | $50 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Cost of funds plus 190 bps
|
| Price: | Par
|
| Rating: | Standard & Poor's: expected AAA
|
|
|
| Class A-1T
|
| Amount: | $111.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Price: | 99.6
|
| Rating: | Standard & Poor's: expected AAA
|
|
|
| Class A-2
|
| Amount: | $24.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Price: | 99.5
|
| Rating: | Standard & Poor's: expected AA
|
|
|
| Class B
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 465 bps
|
| Price: | 99.5
|
| Rating: | Standard & Poor's: expected A
|
|
|
| Equity tranche
|
| Amount: | $139.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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