By Rebecca Melvin
New York, Dec. 3 - Sound Point Capital Management LP priced about $635.25 million of floating-rate notes in seven tranches due 2025 in a collateralized loan obligation, according to an informed source.
The Sound Point CLO IV, Ltd. sold $390 million of class A senior floating-rate notes at Libor plus 137 basis points (Aaa); $5 million in class X senior floating-rate notes at Libor plus 100 bps (Aaa); $69 million of class B senior floating-rate notes at Libor plus 160 bps (Aa2); $34 million of class C floating-rate mezzanine notes at Libor plus 235 bps (A2); $32.5 million of class D floating-rate mezzanine notes at Libor plus 350 bps (Baa3); $26.5 million of class E junior floating-rate notes at Libor plus 450 bps (Ba3); and $16.5 million of class F junior floating-rate notes at Libor plus 495 bps (B2). There was also an equity tranche of $61.75 million of subordinated notes that is non-rated.
Morgan Stanley & Co. LLC was the underwriter.
Sound Point Capital Management is the CLO manager.
The deal follows Sound Point's CLO III $420.75 million of notes priced in nine tranches at the beginning of August. At that time, the $248 million tranche of class A senior floating-rate notes (Aaa//AAA) priced at Libor plus 135 bps.
New York-based Sound Point is a credit-oriented alternative asset manager with about $2.7 billion of assets under management. It plans to use the proceeds to purchase a $600 million portfolio of primarily leveraged loans.
| Issuer: | Sound Point CLO IV, Ltd.
|
| Amount: | About $635.25 million
|
| Maturity: | Nov. 27, 2025
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash-flow CLO
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Non-callable for two years until 2015
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $5 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Rating: | Moody's: Aaa
|
|
|
| Class A notes
|
| Amount: | $390 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 137 bps
|
| Rating: | Moody's: Aaa
|
|
|
| Class B notes
|
| Amount: | $69 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Moody's: Aa2
|
|
|
| Class C notes
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| Amount: | $34 million
|
| Securities: | Floating-rate mezzanine notes
|
| Coupon: | Libor plus 235 bps
|
| Rating: | Moody's: A2
|
|
|
| Class D notes
|
| Amount: | $32.5 million
|
| Securities: | Floating-rate mezzanine notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Moody's: Baa3
|
|
|
| Class E notes
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| Amount: | $26.5 million
|
| Securities: | Floating-rate junior notes
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| Coupon: | Libor plus 450 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Class F notes
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| Amount: | $16.5 million
|
| Securities: | Floating-rate junior notes
|
| Coupon: | Libor plus 495 bps
|
| Rating: | Moody's: B2
|
|
|
| Equity tranche
|
| Amount: | $61.75 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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