By Cristal Cody
Tupelo, Miss., Oct. 28 – Fortress Investment Group LLC sold $598.7 million of notes due Nov. 12, 2030 in a cash flow CDO transaction, according to a market source.
FDF I Ltd. priced $290.5 million of 4.4% class A senior secured fixed-rate notes; $72.5 million of 5.5% class B senior secured fixed-rate notes; $30.5 million of 6.875% class C mezzanine secured deferrable fixed-rate notes; $23 million of 7.5% class D mezzanine secured deferrable fixed-rate notes and $182.2 million of subordinated notes.
GreensLedge Capital Markets LLC arranged the transaction.
The CDO manager is FDF I CM LLC.
The CDO has a non-call period that ends Nov. 12, 2017. The reinvestment period ends Nov. 12, 2020.
The deal is backed by a $600 million corporate bond and loan portfolio. Up to 65% of the portfolio may consist of second lien loans, unsecured loans, bonds, subordinated bonds or unsecured bonds.
Fortress Investment has tapped the market over the year to also price three CLO transactions and refinance two vintage 2012 CLO deals.
The New York City-based investment firm brought to market two CLO deals in 2014.
| Issuer: | FDF I Ltd.
|
| Amount: | $598.7 million
|
| Maturity: | Nov. 12, 2030
|
| Securities: | Fixed-rate and subordinated notes
|
| Structure: | Cash flow CDO
|
| Placement agent: | GreensLedge Capital Markets LLC
|
| Manager: | FDF I CM LLC
|
| Call feature: | Nov. 12, 2017
|
| Pricing date: | Oct. 26
|
| Settlement date: | Nov. 12
|
|
|
| Class A notes
|
| Amount: | $290.5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.4%
|
| Ratings: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $72.5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 5.5%
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $30.5 million
|
| Securities: | Mezzanine secured deferrable fixed-rate notes
|
| Coupon: | 6.875%
|
| Ratings: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $23 million
|
| Securities: | Mezzanine secured deferrable fixed-rate notes
|
| Coupon: | 7.5%
|
| Ratings: | Moody’s: Baa2
|
|
|
| Equity
|
| Amount: | $182.2 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
|
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