By Cristal Cody
Tupelo, Miss., Dec. 22 – Sound Point Capital Management LP sold $812.93 million of notes due Jan. 20, 2031 in the new Sound Point CLO XVIII, Ltd./Sound Point CLO XVIII, Inc. transaction, according to a market source.
The CLO priced $520 million of class A-1 floating-rate notes at Libor plus 112 basis points; $66.9 million of class A-2-A floating-rate notes at Libor plus 140 bps; $21.1 million of 3.74% class A-2-B fixed-rate notes; $48 million of B floating-rate note sat Libor plus 180 bps; $48 million of class C floating-rate notes at Libor plus 250 bps; $32 million of class D floating-rate notes at Libor plus 550 bps and $30.6 million of subordinated notes.
Deutsche Bank Securities Inc. was the placement agent.
Sound Point Capital will manage the CLO.
The CLO will have a two-year non-call period and a five-year reinvestment period.
Proceeds will be used to purchase a portfolio of mostly first-lien senior secured leveraged loans.
The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
Sound Point Capital has priced four new CLOs and refinanced eight vintage CLOs in 2017.
The New York-based asset management firm priced three new CLO deals in 2016.
| Issuer: | Sound Point CLO XVIII, Ltd./Sound Point CLO XVIII, Inc.
|
| Amount: | $812.93 million
|
| Maturity: | Jan. 20, 2031
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Two years
|
| Pricing date: | Dec. 12
|
| Settlement date: | Jan. 23
|
|
|
| Class A-1 notes
|
| Amount: | $520 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 112 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2-A notes
|
| Amount: | $66.9 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Non-rated
|
|
|
| Class A-2-B notes
|
| Amount: | $21.1 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.74%
|
| Ratings: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $32 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $30.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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