By Cristal Cody
Tupelo, Miss., July 22 – Sound Point Capital Management LP priced $470 million of notes in a second refinancing of the Sound Point CLO IX, Ltd./Sound Point CLO IX Inc., according to a market source.
The CLO sold $325 million of class A-RR senior secured floating-rate notes (expected ratings Aaa//AAA) at Libor plus 139 basis points, $55 million of class B-RR senior secured floating-rate notes (expected ratings Aa2//) at Libor plus 195 bps, $25 million of class C-RR deferrable mezzanine floating-rate notes (expected ratings A2//) at Libor plus 290 bps, $30.5 million of 6.2525% class D-RR deferrable mezzanine fixed-rate notes (expected ratings Baa3//), $24.5 million of class E-RR deferrable junior floating-rate notes (expected ratings Ba3//) at Libor plus 680 bps and class F-RR deferrable junior floating-rate notes (expected ratings B3//).
Citigroup Global Markets Inc. was the refinancing placement agent.
Sound Point Capital Management will continue to manage the CLO.
The maturity on the second refinanced notes was extended to July 20, 2032 from the original and first refinanced note maturity of July 20, 2027.
The reset CLO also has an extended two-year non-call period and a five-year reinvestment period.
In the original $515.5 million Sound Point CLO IX transaction issued July 16, 2015, the CLO priced $325 million of class A floating-rate notes at Libor plus 152 bps; $32.5 million of class B-1 floating-rate notes at Libor plus 200 bps; $25 million of class B-2 fixed-rate notes at 4.02%; $27.5 million of class C floating-rate notes at Libor plus 300 bps; $27.5 million of class D floating-rate notes at Libor plus 355 bps; $22.5 million of class E floating-rate notes at Libor plus 550 bps; $10 million of class F deferrable floating-rate notes at Libor plus 650 bps and $45.5 million of subordinated notes.
The CLO was first refinanced on Oct. 20, 2017. In the first refinancing, the CLO priced the AAA tranche at Libor plus 88 bps.
Proceeds will be used to redeem the outstanding notes.
Sound Point Capital is a New York City-based asset management firm.
| Issuer: | Sound Point CLO IX, Ltd./Sound Point CLO IX Inc.
|
| Amount: | $470 million refinancing
|
| Maturity: | July 20, 2032
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Two years
|
| Pricing date: | July 16
|
| Settlement date: | July 22
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-RR notes
|
| Amount: | $325 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 139 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class B-RR notes
|
| Amount: | $55 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Ratings: | Moody’s: Aa2 expected
|
|
|
| Class C-RR notes
|
| Amount: | $25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Ratings: | Moody’s: A2 expected
|
|
|
| Class D-RR notes
|
| Amount: | $30.5 million
|
| Securities: | Deferrable mezzanine fixed-rate notes
|
| Coupon: | 6.2525%
|
| Ratings: | Moody’s: Baa3 expected
|
|
|
| Class E-RR notes
|
| Amount: | $24.5 million
|
| Securities: | Deferrable junior floating-rate notes
|
| Coupon: | Libor plus 680 bps
|
| Ratings: | Moody’s: Ba3 expected
|
|
|
| Class F-RR notes
|
| Amount: | $10 million
|
| Securities: | Deferrable junior floating-rate notes
|
| Coupon: | Libor plus 870 bps
|
| Ratings: | Moody’s: B3 expected
|
|
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