By Cristal Cody
Tupelo, Miss., April 24 – Sound Point Capital Management LP priced $370.75 million of notes due July 15, 2025 in a refinancing of the vintage 2013 Sound Point CLO III, Ltd. transaction, according to a notice of executed supplemental indenture No. 2.
The CLO sold $248.25 million of class A-1-R senior secured floating-rate notes at Libor plus 99 basis points, $64.25 million of class B-R senior secured floating-rate notes at Libor plus 155 bps, $25 million of class C-1-R mezzanine secured deferrable floating-rate notes at Libor plus 215 bps, $5 million of 3.93% class C-2-R mezzanine secured deferrable fixed-rate notes and $28.25 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 335 bps.
Morgan Stanley & Co. LLC arranged the deal.
Sound Point Capital will continue to manage the CLO.
In the original transaction that closed on Aug. 22, 2013, the CLO priced $248 million of class A floating-rate notes at Libor plus 135 bps; $4 million of class X floating-rate notes at Libor plus 100 bps; $53.5 million of class B floating-rate notes at Libor plus 200 bps; $20 million of class C-1 floating-rate notes at Libor plus 270 bps; $5 million of 5.17% class C-2 fixed-rate notes; $23.5 million of class D floating-rate notes at Libor plus 390 bps; $19 million of class E floating-rate notes at Libor plus 460 bps; $8.75 million of class F floating-rate notes at Libor plus 535 bps and $39 million of subordinated notes.
Proceeds were used to redeem the original class A-1, B, C-1, C-2 and D notes.
The deal is collateralized primarily by broadly syndicated senior secured corporate loans.
Sound Point Capital has refinanced five vintage CLOs year to date.
The New York-based asset management firm priced three new CLO deals in 2016.
| Issuer: | Sound Point CLO III, Ltd.
|
| Amount: | $370.75 million refinancing
|
| Maturity: | July 15, 2025
|
| Securities: | Fixed- and floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Sound Point Capital Management LP
|
| Settlement date: | April 17
|
|
|
| Class A-1-R notes
|
| Amount: | $248.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 99 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $64.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class C-1-R notes
|
| Amount: | $25 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-2-R notes
|
| Amount: | $5 million
|
| Securities: | Mezzanine secured deferrable fixed-rate notes
|
| Coupon: | 3.93%
|
| Rating: | Moody’s: Aa2
|
|
|
| Class D-R notes
|
| Amount: | $28.25 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 335 bps
|
| Rating: | Moody’s: Baa1
|
© 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.
