By Cristal Cody
Eureka Springs, Ark., Jan. 25 – Sound Point Capital Management LP priced $410 million of notes due July 15, 2025 at par in a refinancing of the vintage 2013 Sound Point CLO III, Ltd./Sound Point CLO III LLC transaction, according to a market source.
The CLO priced $315 million of class A-R senior secured floating-rate notes at Libor plus 130 basis points; $62.5 million of class B-R senior secured floating-rate notes at Libor plus 175 bps and $32.5 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 240 bps.
Credit Suisse Securities (USA) LLC was the refinancing agent.
Sound Point Capital will continue to manage the CLO.
Proceeds will be used to redeem the original notes.
The transaction is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.
Sound Point Capital, a New York-based asset management firm, priced three CLO deals in 2016.
| Issuer: | Sound Point CLO III, Ltd./Sound Point CLO III Inc.
|
| Amount: | $410 million refinancing
|
| Maturity: | July 15, 2025
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | Sound Point Capital Management LP
|
| Pricing date: | Jan. 18
|
|
|
| Class A-R notes
|
| Amount: | $315 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aaa expected
|
|
|
| Class B-R notes
|
| Amount: | $62.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C-R notes
|
| Amount: | $32.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Price: | Par
|
| Rating: | Moody’s: A2 expected
|
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