By Cristal Cody
Tupelo, Miss., Oct. 4 - Saratoga Investment Corp. sold $314.9 million of notes due Oct. 20, 2023 in a collateralized loan obligation refinancing this week, according to a market source.
Saratoga Investment Corp. CLO 2013-1, Ltd./Saratoga Investment Corp. CLO 2013-1, Inc. priced $2.5 million of class X senior secured floating-rate notes (Aaa) at Libor plus 105 basis points; $170 million of class A-1 senior secured floating-rate notes (Aaa) at Libor plus 130 bps; $20 million of class A-2 senior secured floating-rate notes (Aaa) at Libor plus 150 bps; $44.8 million of class B senior secured floating-rate notes at Libor plus 200 bps; $16 million of class C mezzanine deferrable floating-rate notes at Libor plus 290 bps; $14 million of class D mezzanine deferrable floating-rate notes at Libor plus 350 bps; $13.1 million of class E mezzanine deferrable floating-rate notes at Libor plus 450 bps; and $4.5 million of class F mezzanine deferrable floating-rate notes at Libor plus 575 bps; and $30 million of subordinated notes.
C&Co/PrinceRidge LLC was the underwriter.
The CLO, backed primarily by broadly syndicated first-lien senior secured corporate loans, is a refinancing of existing debt issued by GSC Investment Corp. CLO 2007, Ltd., which will be renamed Saratoga Investment Corp. CLO 2013-1, Ltd. as part of the deal.
Saratoga Investment will manage the CLO.
The notes have a two-year non-call period and a three-year reinvestment period.
Saratoga Investment is a New York-based business development company that provides financing for U.S. middle-market companies.
| Issuer: | Saratoga Investment Corp. CLO 2013-1, Ltd./ Saratoga Investment Corp. CLO 2013-1, Inc.
|
| Amount: | $314.9 million
|
| Maturity: | Oct. 20, 2023
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| Securities: | Floating-rated and subordinated notes
|
| Structure: | Cash flow CLO
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| Placement agent: | C&Co/PrinceRidge LLC
|
| Manager: | Saratoga Investment Corp.
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| Call feature: | October 2015
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| Settlement date: | Oct. 21
|
|
|
| Class X notes
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| Amount: | $2.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 105 bps
|
| Rating: | Moody's: Aaa
|
|
|
| Class A-1 notes
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| Amount: | $170 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 130 bps
|
| Rating: | Moody's: Aaa
|
|
|
| Class A-2 notes
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| Amount: | $20 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 150 bps
|
| Rating: | Moody's: Aaa
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|
|
| Class B notes
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| Amount: | $44.8 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 200 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
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| Amount: | $16 million
|
| Securities: | Mezzanine deferrable floating-rate notes
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| Coupon: | Libor plus 290 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
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| Amount: | $14 million
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| Securities: | Mezzanine deferrable floating-rate notes
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| Coupon: | Libor plus 350 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
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| Amount: | $13.1 million
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| Securities: | Mezzanine deferrable floating-rate notes
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| Coupon: | Libor plus 450 bps
|
| Ratings: | Non-rated
|
|
|
| Class F notes
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| Amount: | $4.5 million
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| Securities: | Mezzanine deferrable floating-rate notes
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| Coupon: | Libor plus 575 bps
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| Ratings: | Non-rated
|
|
|
| Equity tranche
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| Amount: | $30 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
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