By Cristal Cody
Tupelo, Miss., July 6 – MidOcean Credit Fund Management LP priced and closed on $613.5 million of notes due July 15, 2029 in a new collateralized loan obligation deal, according to market sources and a company news release on Thursday.
The MidOcean Credit CLO VII/MidOcean Credit CLO VII LLC vehicle sold $378 million of class A-1 floating-rate notes at Libor plus 132 basis points; $24 million of class A-2 floating-rate notes at Libor plus 155 bps; $51 million of class B floating-rate notes at Libor plus 190 bps; $36 million of class C deferrable floating-rate notes at Libor plus 275 bps; $34.5 million of class D deferrable floating-rate notes at Libor plus 388 bps; $28.5 million of class E deferrable floating-rate notes at Libor plus 665 bps; $9 million of class F deferrable floating-rate notes at Libor plus 810 bps and $52.5 million of income notes.
Goldman Sachs & Co. LLC was the placement agent.
MidOcean Credit Fund Management is the CLO manager.
The CLO has a two-year non-call period and a four-year reinvestment period.
The notes are collateralized mainly by broadly syndicated first lien senior secured corporate loans.
Proceeds will be used to purchase a portfolio of about $600 million of mostly first lien senior secured leveraged loans.
The transaction is MidOcean’s first CLO structured to comply with U.S. risk-retention rules and its seventh CLO since 2013, according to the press release.
The affiliate of New York City-based private equity firm MidOcean Partners priced two new CLOs and refinanced one CLO transaction in 2016.
| Issuer: | MidOcean Credit CLO VII/MidOcean Credit CLO VII LLC
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| Amount: | $613.5 million
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| Maturity: | July 15, 2029
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| Securities: | Floating-rate and income notes
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| Structure: | Cash flow CLO
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| Placement agent: | Goldman Sachs & Co. LLC
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| Manager: | MidOcean Credit Fund Management LP
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| Call feature: | Two years
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| Pricing date: | June 2
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| Settlement date: | July 6
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| Distribution: | Rule 144A, Regulation S
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| Class A-1 notes
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| Amount: | $378 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 132 bps
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| Ratings: | Moody’s: Aaa
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| Fitch: AAA
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|
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| Class A-2 notes
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| Amount: | $24 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 155 bps
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| Ratings: | Moody’s: Aaa
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|
|
| Class B notes
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| Amount: | $51 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 190 bps
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| Ratings: | Moody’s: Aa2
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|
|
| Class C notes
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| Amount: | $36 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 275 bps
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| Ratings: | Moody’s: A2
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|
|
| Class D notes
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| Amount: | $34.5 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 388 bps
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| Ratings: | Moody’s: Baa3
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|
|
| Class E notes
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| Amount: | $28.5 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 665 bps
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| Ratings: | Moody’s: Ba3
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| Class F notes
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| Amount: | $9 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 810 bps
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| Ratings: | Moody’s: B3
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|
|
| Equity
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| Amount: | $52.5 million
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| Securities: | Income notes
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| Ratings: | Non-rated
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