By Cristal Cody
Tupelo, Miss., March 19 - Sankaty Advisors LLC priced a $727.5 million collateralized loan obligation transaction, according to an informed source on Wednesday.
Avery Point IV CLO Ltd./Avery Point IV CLO Corp. placed $4 million of class X senior floating-rate notes (//AAA) at Libor plus 100 basis points and $427 million of class A senior secured floating-rate notes (//AAA) at Libor plus 152 bps at the top of the structure.
The CLO also sold $66.25 million of class B-1 floating-rate notes at Libor plus 210 bps; $10 million of 4.35% class B-2 fixed-rate notes; $66.5 million of class C floating-rate notes at Libor plus 300 bps; $39.25 million of class D floating-rate notes at Libor plus 350 bps; $36.75 million of class E floating-rate notes at Libor plus 460 bps; $16 million of class F floating-rate notes at Libor plus 500 bps and $61.75 million of subordinated notes.
Morgan Stanley & Co. LLC arranged the deal.
Sankaty Advisors will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The notes are due April 15, 2026.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Proceeds will be used to purchase assets to reach a target leveraged loan portfolio of about $700 million.
Boston-based Sankaty, the credit investment unit of Bain Capital LLC, was in the primary market in 2013 with the $516.75 million Avery Point II CLO Ltd./Avery Point II CLO Corp. deal and the $514.16 million Avery Point III CLO Ltd./Avery Point III CLO Corp. transaction.
| Issuer: | Avery Point IV CLO Ltd./Avery Point IV CLO Corp.
|
| Amount: | $727.5 million
|
| Maturity: | April 15, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Sankaty Advisors LLC
|
| Call feature: | April 2016
|
| Settlement date: | April 16
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: Fitch: AAA
|
|
|
| Class A notes
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| Amount: | $427 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 152 bps
|
| Ratings: Fitch: AAA
|
|
|
| Class B-1 notes
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| Amount: | $66.25 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 210 bps
|
| Ratings: Non-rated
|
|
|
| Class B-2 notes
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| Amount: | $10 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.35%
|
| Ratings: Non-rated
|
|
|
| Class C notes
|
| Amount: | $66.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Ratings: Non-rated
|
|
|
| Class D notes
|
| Amount: | $39.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Ratings: Non-rated
|
|
|
| Class E notes
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| Amount: | $36.75 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 460 bps
|
| Ratings: Non-rated
|
|
|
| Class F notes
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| Amount: | $16 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 500 bps
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| Ratings: Non-rated
|
|
|
| Equity tranche
|
| Amount: | $61.75 million
|
| Securities: | Subordinated notes
|
| Ratings: Non-rated
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