By Cristal Cody
Tupelo, Miss., July 29 – Credit Value Partners LP priced a $520.75 million collateralized loan obligation offering of notes due July 18, 2026, and the offering was set to close on Tuesday, according to a market source.
CVP Cascade CLO-2 Ltd./CVP Cascade CLO-2 LLC sold $316.25 million of class A-1 floating-rate notes (Aaa/AAA/) at Libor plus 153 basis points; $38.75 million of class A-2A floating-rate notes (/AA/) at Libor plus 205 bps; $20 million of 4.58% class A-2B fixed-rate notes (/AA/); $37.75 million of class B deferrable floating-rate notes (/A/) at Libor plus 290 bps; $24.75 million of class C deferrable floating-rate notes (/BBB/) at Libor plus 380 bps; $24 million of class D deferrable floating-rate notes (/BB/) at Libor plus 480 bps and $13 million of class E deferrable floating-rate notes (/B/) at Libor plus 580 bps.
The transaction included $46.25 million of subordinated notes in the equity tranche.
Credit Suisse Securities (USA) LLC was the placement agent.
CVP CLO Manager, LLC, part of Credit Value Partners, will manage the CLO. Babson Capital Management LLC is the replacement manager.
The CLO is backed primarily by first-lien senior secured loans and eligible investments.
The CLO has a two-year non-call period and a four-year reinvestment period.
Credit Value Partners was previously in the primary market in December with the $419.35 million CVP Cascade CLO-1, Ltd./CVP Cascade CLO-1 LLC deal.
The investment firm is based in Greenwich, Conn.
| Issuer: | CVP Cascade CLO-2 Ltd./CVP Cascade CLO-2 LLC
|
| Amount: | $520.75 million
|
| Maturity: | July 18, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | Credit Value Partners LP
|
| Call feature: | 2016
|
| Pricing date: | July 2
|
| Settlement date: | July 29
|
|
|
| Class A-1 notes
|
| Amount: | $316.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 153 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A-2A notes
|
| Amount: | $38.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class A-2B notes
|
| Amount: | $20 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.58%
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B notes
|
| Amount: | $37.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C notes
|
| Amount: | $24.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 380 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 480 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Class E notes
|
| Amount: | $13 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 580 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $46.25 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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