By Rebecca Melvin
New York, July 7 – Palmer Square Capital Management LLC priced $408.15 million of notes due July 20, 2027 in a collateralized loan obligation offering, according to a market source.
Palmer Square CLO 2015-2 Ltd. sold $247.8 million of class A-1A senior secured floating-rate notes at Libor plus 150 basis points; $5 million of class A-1B senior secured fixed-rate notes at 3.338%; $52.1 million of class A-2 senior secured floating-rate notes at Libor plus 223 bps; $25.6 million of class B senior secured deferrable floating-rate notes at Libor plus 310 bps; $20.5 million of class C senior secured deferrable floating-rate notes at Libor plus 365 bps; $15.85 million of class D secured deferrable floating-rate notes at Libor plus 545 bps and $34 million of subordinated notes.
Citigroup Global Markets Inc. was the initial purchaser of the transaction.
Palmer Square Capital Management LLC is the CLO manager.
The CLO is non-callable until July 20, 2017. The reinvestment period ends July 20, 2019.
The notes are collateralized primarily by broadly syndicated senior secured corporate loans.
Palmer Square Capital Management brought the Palmer Square CLO 2015-1 Ltd. for $435.8 million in April and priced two CLO deals in 2014.
The investment management firm is based in Leawood, Kan.
| Issuer: | Palmer Square CLO 2015-2 Ltd.
|
| Amount: | $408.15 million
|
| Maturity: | July 20, 2027
|
| Securities: | Floating-rate, fixed-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Initial purchaser: | Citigroup Global Markets Inc.
|
| Manager: | Palmer Square Capital Management LLC
|
| Call feature: | July 20, 2017
|
| Pricing date: | Early July
|
| Settlement date: | July 25
|
|
|
| Class A-1A notes
|
| Amount: | $247.8 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | Standard & Poor’s: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.338%
|
| Rating: | Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $52.1 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 223 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B notes
|
| Amount: | $25.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C notes
|
| Amount: | $20.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class D notes
|
| Amount: | $15.85 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 545 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Class E notes
|
| Amount: | $7.3 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 635 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity
|
| Amount: | $34 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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