By Cristal Cody
Tupelo, Miss., June 18 – MidOcean Credit Fund Management LP priced $524.8 million of notes in a refinancing and reset of a vintage 2014 collateralized loan obligation deal, according to a market source and a notice of revised proposed second supplemental indenture on Friday.
MidOcean Credit CLO III/MidOcean Credit CLO III LLC placed $8 million of class X floating-rate notes at Libor plus 63 basis points; $208 million of class A1-R floating-rate notes at Libor plus 112 bps; $30 million of 4.07% class A2-R fixed-rate notes; $25 million of class A3A1 floating-rate notes at Libor plus 105 bps; $24 million of class A3A2 floating-rate notes at Libor plus 97 bps; $8 million of class A3B1 floating-rate notes at Libor plus 140 bps; $10 million of 4.35% class A3B2 fixed-rate notes and $75 million of class B-R floating-rate notes at Libor plus 180 bps.
The CLO also sold $31 million of class C-R deferrable floating-rate notes at Libor plus 200 bps; $30.5 million of class D-R floating-rate notes at Libor plus 326 bps; $18.5 million of class E-R deferrable floating-rate notes at Libor plus 620 bps; $9.2 million of class F-R deferrable floating-rate notes at Libor plus 882 bps and $47.6 million of income notes.
MUFG was the refinancing placement agent.
The maturity on the notes was extended to April 21, 2031 from the July 21, 2026 maturity. The reset CLO has an an extended two-year non-call period and five-year reinvestment period.
The $518 million CLO originally was issued on July 22, 2014.
In that transaction, MidOcean priced $312.5 million of class A floating-rate notes at Libor plus 146 bps; $62.5 million of class B floating-rate notes at Libor plus 200 bps; $36.25 million of class C deferrable floating-rate notes at Libor plus 290 bps; $27.5 million of class D deferrable floating-rate notes at Libor plus 375 bps; $23.75 million of class E deferrable floating-rate notes at Libor plus 525 bps; $11.25 million of class F deferrable floating-rate notes at Libor plus 600 bps and $44.25 million of income notes.
Proceeds will be used to redeem the original notes.
The affiliate of New York City-based private equity firm MidOcean Partners priced one new CLO and refinanced one CLO transaction in 2017.
| Issuer: | MidOcean Credit CLO III/MidOcean Credit CLO III LLC
|
| Amount: | $524.8 million refinancing
|
| Maturity: | April 21, 2031
|
| Securities: | Fixed-rate, floating-rate and income notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | MUFG
|
| Manager: | MidOcean Credit Fund Management LP
|
| Call feature: | Two years
|
| Settlement date: | June 29
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 63 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A1-R notes
|
| Amount: | $208 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 112 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class A2-R notes
|
| Amount: | $30 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.07%
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class A3A1 notes
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 105 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class A3A2 notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 97 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class A3B1 notes
|
| Amount: | $8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class A3B2 notes
|
| Amount: | $10 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.35%
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class B-R notes
|
| Amount: | $75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $31 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $30.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 326 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $18.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 620 bps
|
| Rating: | S&P: BB-
|
|
|
| Class F-R notes
|
| Amount: | $9.2 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 882 bps
|
| Rating: | S&P: B-
|
|
|
| Equity
|
| Amount: | $47.6 million
|
| Securities: | Income notes
|
| Ratings: | Non-rated
|
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