By Cristal Cody
Tupelo, Miss., May 19 – Octagon Credit Investors, LLC refinanced $279.8 million of notes due Nov. 18, 2026 in the vintage 2014 Octagon Loan Funding, Ltd./Octagon Loan Funding, LLC transaction, according to a notice of executed first supplemental indenture on Friday.
The CLO sold $202 million of class A-1-R senior secured floating-rate notes at Libor plus 114 basis points, $50 million of class A-2-R senior secured floating-rate notes at Libor plus 114 bps, $13 million of class B-2-R senior secured floating-rate notes at Libor plus 160 bps and $14.8 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 340 bps.
GreensLedge Capital Markets LLC arranged the offering.
Octagon Credit Investors will continue to manage the CLO.
In the original transaction priced on Aug. 26, 2014, the CLO sold $2.5 million of class X floating-rate notes at Libor plus 100 bps, $202 million of class A-1 floating-rate notes at Libor plus 145 bps and $50 million of class A-2 floating-rate notes at Libor plus 115 bps, which stepped up to Libor plus 190 bps after November 2016. The CLO also sold $36.7 million of class B-1 floating-rate notes at Libor plus 225 bps; $13 million of 4.465% class B-2 fixed-rate notes; $30.7 million of class C floating-rate notes at Libor plus 325 bps; $14.8 million of class D floating-rate notes at Libor plus 365 bps; $20.7 million of class E floating-rate notes at Libor plus 520 bps and $42.6 million of subordinated notes.
Proceeds were used to redeem the original class A-1, A-2, B-2 and D notes.
The CLO is backed primarily by broadly syndicated senior secured corporate loans.
Octagon Credit Investors has refinanced four vintage CLOs year to date.
The CLO manager priced three new CLOs and refinanced one CLO in 2016.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Loan Funding, Ltd./Octagon Loan Funding, LLC
|
| Amount: | $279.8 million refinancing
|
| Maturity: | Nov. 18, 2026
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | GreensLedge Capital Markets LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Settlement date: | May 18
|
| Distribution: | Rule 144A
|
|
|
| Class A-1-R notes
|
| Amount: | $202 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 114 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $50 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 114 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-2-R notes
|
| Amount: | $13 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class D-R notes
|
| Amount: | $14.8 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Rating: | Moody’s: Baa3
|
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