Sound Point CLO III to sell $420.8 million of notes in nine tranches

By Cristal Cody

Tupelo, Miss., July 29 - Sound Point Capital Management LP plans to price the $420.8 million Sound Point CLO III, Ltd. offering of notes due Aug. 13, 2025, according to informed sources.

The deal includes $248 million of class A senior floating-rate notes (Aaa//AAA); $53.5 million of class B senior floating-rate notes (Aa2); $20 million of class C-1 floating-rate mezzanine secured notes (A2); $5 million of class C-2 fixed-rate mezzanine secured notes (A2); $23.5 million of class D mezzanine secured floating-rate notes (Baa3); $19 million of class E junior secured floating-rate notes (Ba3); $8.8 million of class F junior secured floating-rate notes (B2); $4 million of class X senior floating-rate notes (Aaa//AAA); and $39 million of subordinated notes.

The CLO will have a two-year non-call period and a four-year reinvestment period.

Morgan Stanley & Co. LLC is the underwriter.

Sound Point Capital Management will manage the CLO, which is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.

The portfolio is expected to be about 70% ramped at closing and 100% ramped within the following six months.

The deal is scheduled to close on Aug. 13.

The New York-based asset manager plans to use the proceeds to purchase a $400 million portfolio of mostly leveraged loans.

© 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.