By Cristal Cody
Tupelo, Miss., June 20 - Sankaty Advisors LLC closed Thursday on its previously announced $516.75 million collateralized loan obligation offering of notes due July 17, 2025, according to market sources.
Avery Point II CLO Ltd./Avery Point II CLO Corp. priced a $304 million tranche of class A senior secured floating-rate notes (/AAA/AAA) at Libor plus 111 basis points, $46 million of class B-1 senior secured floating-rate notes (/AA/) at Libor plus 155 bps; $25 million of 3.21% class B-2 senior secured fixed-rate notes (/AA/); $36 million of class C senior deferrable floating-rate notes (/A/) at Libor plus 275 bps; $26 million of class D senior deferrable floating-rate notes (/BBB/) at Libor plus 345 bps; $24 million of class E senior deferrable floating-rate notes (/BB/) at Libor plus 425 bps; $13.5 million of class F senior deferrable floating-rate notes (/B/) at Libor plus 510 bps; and $42.25 million of subordinated notes.
Merrill Lynch, Pierce, Fenner & Smith Inc. was the underwriter.
Boston-based Sankaty Advisors, the credit investment unit of Bain Capital LLC, is the CLO manager.
The deal is backed by broadly syndicated senior secured corporate loans.
The arbitrage cash flow CLO has a non-call period that ends July 17, 2015 and a reinvestment period that ends July 17, 2017.
Proceeds will be used to purchase a portfolio of about $500 million of primarily leveraged loans.
| Issuer: | Avery Point II CLO Ltd./Avery Point II CLO Corp.
|
| Amount: | $516.75 million
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| Maturity: | July 17, 2025
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| Securities: | Fixed-rate, floating-rate and subordinated notes
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| Structure: | Cash-flow CLO
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| Placement agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
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| Manager: | Sankaty Advisors LLC
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| Call feature: | July 17, 2015
|
| Settlement date: | June 20
|
|
|
| Class A notes
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| Amount: | $304 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 111 bps
|
| Ratings: | Standard & Poor's: AAA
|
| Fitch: AAA
|
|
|
| Class B-1 notes
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| Amount: | $46 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 155 bps
|
| Rating: | Standard & Poor's: AA
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|
|
| Class B-2 notes
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| Amount: | $25 million
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| Securities: | Senior secured fixed-rate notes
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| Coupon: | 3.21%
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| Rating: | Standard & Poor's: AA
|
|
|
| Class C notes
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| Amount: | $36 million
|
| Securities: | Senior deferrable floating-rate notes
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| Coupon: | Libor plus 275 bps
|
| Rating: | Standard & Poor's: A
|
|
|
| Class D notes
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| Amount: | $26 million
|
| Securities: | Senior deferrable floating-rate notes
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| Coupon: | Libor plus 345 bps
|
| Rating: | Standard & Poor's: BBB
|
|
|
| Class E notes
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| Amount: | $24 million
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| Securities: | Senior deferrable floating-rate notes
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| Coupon: | Libor plus 425 bps
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| Rating: | Standard & Poor's: BB
|
|
|
| Class F notes
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| Amount: | $13.5 million
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| Securities: | Senior deferrable floating-rate notes
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| Coupon: | Libor plus 510 bps
|
| Rating: | Standard & Poor's: B
|
|
|
| Equity tranche
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| Amount: | $42.25 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
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