By Cristal Cody
Tupelo, Miss., July 23 – Fortress Investment Group LLC sold $379.3 million of notes in a refinancing and reset of a vintage 2015 CLO transaction, according to a market source and a notice of executed supplemental indenture on Monday.
Fortress Credit BSL VI Ltd./Fortress Credit BSL VI LLC, formerly known as Hildene CLO IV, Ltd./Hildene CLO IV LLC, priced $315 million of class A-R senior secured floating-rate notes at Libor plus 115 basis points; $36.75 million of class B-1-R senior secured floating-rate notes at Libor plus 200 bps; $60 million of 4.905% class B-2-R senior secured fixed-rate notes; $35.25 million of class C-R deferrable mezzanine floating-rate notes at Libor plus 245 bps; $35.5 million of class D-R deferrable mezzanine floating-rate notes at Libor plus 345 bps; $29.75 million of class E-R deferrable junior floating-rate notes at Libor plus 645 bps and $69.84 million of subordinated notes.
Goldman Sachs & Co. LLC was the refinancing placement agent.
The CLO manager is CF H-BSL CLO Management LLC.
The maturity on the notes was extended to July 23, 2031 from the original July 22, 2027 maturity.
The reset CLO has a two-year non-call period and a five-year reinvestment period.
In the original $358.3 million deal that was issued Aug. 4, 2015, the CLO priced $206.5 million of class A-1A floating-rate notes at Libor plus 150 bps, $17.5 million of 3.41% class A-1B fixed-rate notes and $40.85 million of class A-2 floating-rate notes at Libor plus 225 bps.
The CLO also sold $17.5 million of class B floating-rate notes at Libor plus 310 bps; $21 million of class C floating-rate notes at Libor plus 380 bps; $18.75 million of class D floating-rate notes at Libor plus 550 bps and $36.2 million of subordinated notes in the equity tranche.
Proceeds will be used to redeem the original notes.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Fortress Investment is a New York City-based investment firm.
| Issuer: | Fortress Credit BSL VI Ltd./Fortress Credit BSL VI LLC
|
| Amount: | $379.3 million refinancing
|
| Maturity: | July 23, 2031
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Goldman Sachs & Co. LLC
|
| Manager: | CF H-BSL CLO Management LLC
|
| Call feature: | July 23, 2020
|
| Settlement date: | July 23
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $315 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 115 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | $36.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 177 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2-R notes
|
| Amount: | $60 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.905%
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $35.25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 245 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $35.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 345 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $29.75 million
|
| Securities: | Deferrable junior floating-rate notes
|
| Coupon: | Libor plus 645 bps
|
| Ratings: | Moody’s: Ba3
|
| S&P: Non-rated
|
|
|
| Equity
|
| Amount: | $69.84 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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