By Cristal Cody
Tupelo, Miss., March 12 – Oaktree Capital Management (UK) LLP priced €369.75 million of notes due March 15, 2029 at par in a refinancing of a 2016 collateralized loan obligation deal, according to a market source.
Arbour CLO III Ltd. sold €10 million of 1% class A-1R senior secured fixed-rate notes and €230 million of class A-2R senior secured floating-rate notes at Euribor plus 58 basis points.
The CLO priced €25 million of 1.92% class B-1R senior secured fixed-rate notes and €19 million of class B-2R senior secured floating-rate notes at Euribor plus 90 bps.
Arbour CLO III also sold €23 million of class C-R senior secured deferrable floating-rate notes at Euribor plus 140 bps; €23.5 million of class D-R senior secured deferrable floating-rate notes at Euribor plus 210 bps; €27.5 million of class E-R senior secured deferrable floating-rate notes at Euribor plus 435 bps and €11.75 million of class F-R senior secured deferrable floating-rate notes at Euribor plus 650 bps.
Citigroup Global Markets Ltd. was the refinancing placement agent.
Oaktree Capital Management (UK) will continue to manage the CLO.
The CLO originally priced on Jan. 15, 2016. The €414.35 million CLO had priced €230 million of class A-1 senior secured floating-rate notes at Euribor plus 145 bps, €10 million of 1.688% class A-2 senior secured fixed-rate notes, €19 million of class B-1 senior secured floating-rate notes at Euribor plus 210 bps and €25 million of 2.612% class B-2 senior secured fixed-rate notes.
Arbour CLO III also originally priced €23 million of class C senior secured deferrable floating-rate notes at Euribor plus 290 bps; €23.5 million of class D senior secured deferrable floating-rate notes at Euribor plus 390 bps; €27.5 million of class E senior secured deferrable floating-rate notes at Euribor plus 550 bps; €11.75 million of class F senior secured deferrable floating-rate notes at Euribor plus 675 bps and €44.6 million of subordinated notes.
Proceeds from the deal will be used to redeem the original notes on March 15 at par. The tranche of subordinated notes will remain outstanding.
The refinanced CLO is backed mostly by first-lien senior secured loans and secured senior floating-rate notes.
London-based Oaktree Capital Management (UK) is an affiliate of Los Angeles-based Oaktree Capital Management, LP.
| Issuer: | Arbour CLO III Ltd.
|
| Amount: | €369.75 million refinancing
|
| Maturity: | March 15, 2029
|
| Securities: | Fixed-rate and floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Ltd.
|
| Manager: | Oaktree Capital Management (UK) LLP
|
| Settlement date: | March 15
|
|
|
| Class A-1R notes
|
| Amount: | €10 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 1%
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2R notes
|
| Amount: | €230 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 58 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1R notes
|
| Amount: | €25 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 1.92%
|
| Price: | Par
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class B-2R notes
|
| Amount: | €19 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 90 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class C-R notes
|
| Amount: | €23 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 140 bps
|
| Price: | Par
|
| Ratings: | Moody’s: A2
|
| Fitch: A
|
|
|
| Class D-R notes
|
| Amount: | €23.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 210 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB
|
|
|
| Class E-R notes
|
| Amount: | €27.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 435 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Ba2
|
| Fitch: BB
|
|
|
| Class F-R notes
|
| Amount: | €11.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Euribor plus 650 bps
|
| Price: | Par
|
| Ratings: | Moody’s: B2
|
| Fitch: B-
|
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