By Cristal Cody
Tupelo, Miss., Nov. 17 – Hildene Leveraged Credit, LLC sold $361 million of notes due Oct. 20, 2026 in a collateralized loan obligation deal, according to a market source.
Hildene CLO III, Ltd./Hildene CLO III LLC priced $220.5 million of class A senior secured floating-rate notes (Aaa) at Libor plus 160 basis points; $43 million of class B senior secured floating-rate notes (Aa2) at Libor plus 275 bps; $18.75 million of class C deferrable floating-rate notes (A2) at Libor plus 360 bps; $20.25 million of class D deferrable floating-rate notes (Baa3) at Libor plus 410 bps; $18.75 million of class E deferrable floating-rate notes (Ba3) at Libor plus 525 bps; $5.5 million of class F deferrable floating-rate notes (B3) at Libor plus 600 bps and $34.25 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
Hildene Leveraged Credit will manage the CLO, which is backed primarily by first-lien senior secured corporate loans and eligible investments.
The CLO has a two-year non-call period and a four-year reinvestment period.
Hildene Leveraged Credit was last in the primary market on May 8, 2014 with the $413.75 million Hildene CLO II, Ltd./Hildene CLO II LLC deal.
The firm, part of Hildene Capital Management, LLC, an asset management firm based in Stamford, Conn., priced the $309.75 million Hildene CLO I Ltd./Hildene CLO I LLC transaction in December 2013.
| Issuer: | Hildene CLO III, Ltd./Hildene CLO III LLC
|
| Amount: | $361 million
|
| Maturity: | Oct. 20, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Hildene Leveraged Credit, LLC
|
| Call feature: | Oct. 20, 2016
|
| Pricing date: | Nov. 14
|
| Settlement date: | Dec. 4
|
|
|
| Class A notes
|
| Amount: | $220.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
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| Amount: | $43 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
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| Amount: | $18.75 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 360 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $20.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $18.85 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 525 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
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| Amount: | $5.5 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 600 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity tranche
|
| Amount: | $34.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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