By Cristal Cody
Tupelo, Miss., Nov. 21 - MP Senior Credit Partners LP sold $425 million of notes due Jan. 15, 2025 in the Gallatin CLO VI 2013-2, Ltd./Gallatin CLO VI 2013-2, LLC transaction, according to market sources.
The CLO priced $3.75 million of class X senior secured floating-rate notes (//AAA) at Libor plus 110 basis points; $215.63 million of class A-1 senior secured floating-rate notes (//AAA) at Libor plus 145 bps; a $50 million class A-2 loan (//AAA/) at Libor plus 145 bps; $57.38 million of class B senior secured floating-rate notes (//AA) at Libor plus 200 bps; $19.65 million of 3% class C fixed-rate notes (//A); $21.25 million of 3.5% class D fixed-rate notes; $21.25 million of 6.4% class E fixed-rate notes (//BB) and about $36.1 million of subordinated notes.
The class A-2 loan will be issued when the deal closes and will include an option to be converted into class A-2 notes.
Underwriter details were not immediately available.
The CLO has a two-year non-callable period and a four-year reinvestment period.
The issue is backed primarily by broadly syndicated first-lien senior secured corporate loans.
MP Senior Credit Partners, a New York City-based investment firm, will manage the CLO.
Proceeds from the deal will be used to purchase a portfolio of about $425 million of primarily leveraged loans.
The firm, which formed in 2012 as a joint venture between UrsaMine Credit Advisors LLC and MatlinPatterson Asset Management LP, was in the market over the summer with a CLO transaction. MP Senior Credit Partners closed in July on the $300.25 million Gallatin CLO V 2013-1, Ltd./Gallatin CLO V 2013-1 LLC deal.
| Issuer: | Gallatin CLO VI 2013-2, Ltd./Gallatin CLO VI 2013-2, LLC
|
| Amount: | $425 million
|
| Maturity: | Jan. 15, 2025
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Manager: | MP Senior Credit Partners LP
|
| Call feature: | Two years
|
| Settlement date: | Dec. 11
|
|
|
| Class X notes
|
| Amount: | $3.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 110 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $215,625,000
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 loan
|
| Amount: | $50 million
|
| Securities: | Floating-rate loan
|
| Coupon: | Libor plus 145 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $57,375,000
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | Fitch: AA
|
|
|
| Class C notes
|
| Amount: | $19.65 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3%s
|
| Rating: | Fitch: A
|
|
|
| Class D notes
|
| Amount: | $21.25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.5%
|
| Rating: | Fitch: BBB
|
|
|
| Class E notes
|
| Amount: | $21.25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 6.4%
|
| Rating: | Fitch: BB
|
|
|
| Equity tranche
|
| Amount: | $36.1 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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