By Cristal Cody
Eureka Springs, Ark., Oct. 20 – Sound Point Capital Management LP sold $715 million of notes due Jan. 23, 2029 in the Sound Point CLO XIV, Ltd./Sound Point CLO XIV LLC transaction, according to a market source on Thursday.
The CLO priced $451.5 million of class A floating-rate notes at Libor plus 153 basis points; $55.5 million of class B-1 floating-rate notes at Libor plus 200 bps; $25 million of 3.4195% class B-2 fixed-rate notes; $42 million of class C floating-rate notes at Libor plus 265 bps; $35 million of class D floating-rate notes at Libor plus 385 bps; $35 million of class E floating-rate notes at Libor plus 665 bps and $71 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
Sound Point Capital will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is backed primarily by first-lien senior secured loans.
Proceeds from the offering will be used to purchase a $700 million portfolio of mainly senior secured leveraged loans.
Sound Point Capital has brought three CLO deals to market year to date.
The New York-based asset management firm priced three CLO transactions in 2015.
| Issuer: | Sound Point CLO XIV, Ltd./Sound Point CLO XIV Inc.
|
| Amount: | $715 million
|
| Maturity: | Jan. 23, 2029
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Two years
|
| Settlement date: | Nov. 17
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $451.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 153 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $55.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.4195%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $42 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $35 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $35 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 665 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $71 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
