By Cristal Cody
Tupelo, Miss.., Aug. 24 – Park Avenue Institutional Advisers LLC priced $365.7 million of notes in a refinancing and reset of the manager’s first broadly syndicated collateralized loan obligation deal, according to a market source.
Park Avenue Institutional Advisers CLO Ltd. 2016-1/Park Avenue Institutional Advisers CLO LLC 2016-1 sold $250 million of class A-1-R senior secured floating-rate notes at Libor plus 120 basis points; $42.2 million of class A-2-R senior secured floating-rate notes at Libor plus 180 bps; $35.8 million of class B-R senior secured deferrable floating-rate notes at Libor plus 223 bps; $22 million of class C-R senior secured deferrable floating-rate notes at Libor plus 306 bps and $15.7 million of class D-R secured deferrable floating-rate notes at Libor plus 585 bps.
J.P. Morgan Securities LLC was the refinancing placement agent.
Park Avenue Institutional Advisers will continue to manage the CLO.
The maturity on the reset notes was extended to August 2031 from the Aug. 23, 2028 original maturity.
The CLO also has an extended two-year non-call period and a five-year reinvestment period.
In the original $405.95 million transaction that was issued Aug. 23, 2016, the CLO sold $250.5 million of class A-1 floating-rate notes at Libor plus 170 bps; $42.3 million of class A-2 floating-rate notes at Libor plus 245 bps; $34.4 million of class B deferrable floating-rate notes at Libor plus 345 bps; $23.2 million of class C deferrable floating-rate notes at Libor plus 475 bps; $12.6 million of class D deferrable floating-rate notes at Libor plus 700 bps and $42.95 million of subordinated notes.
Proceeds were used to redeem the original notes. The tranche of subordinated notes will remain outstanding.
The CLO is collateralized mainly by broadly syndicated senior secured loans.
Park Avenue Institutional Advisers is a New York-based investment management firm and subsidiary of Guardian Life Insurance Co. of America.
| Issuer: | Park Avenue Institutional Advisers CLO Ltd. 2016-1/Park Avenue Institutional Advisers CLO LLC 2016-1
|
| Amount: | $365.7 million refinancing
|
| Maturity: | August 2031
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Park Avenue Institutional Advisers LLC
|
| Call feature: | Two years
|
| Pricing date: | Aug. 16
|
| Settlement date: | Aug. 23
|
|
|
| Class A-1-R notes
|
| Amount: | $250 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $42.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $35.8 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 223 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $22 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 306 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R notes
|
| Amount: | $15.7 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 585 bps
|
| Rating: | S&P: BB-
|
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