By Cristal Cody
Tupelo, Miss., April 1 - Sound Point Capital Management LP sold $628 million of notes due April 21, 2026 in the Sound Point CLO V, Ltd./Sound Point CLO V Inc. offering, according to an informed source on Tuesday.
The CLO priced $4 million of class X senior secured floating-rate notes (Aaa//AAA) at Libor plus 100 basis points; $390 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 157 bps; $37 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 190 bps; $30 million of 4.28% class B-2 senior secured fixed-rate notes (Aa2); $32.5 million of class C mezzanine secured deferrable floating-rate notes (A2) at Libor plus 275 bps; $35.5 million of class D mezzanine secured deferrable floating-rate notes (Baa3) at Libor plus 340 bps; $27 million of class E junior secured deferrable floating-rate notes (Ba3) at Libor plus 425 bps; $16 million of class F junior secured deferrable floating-rate notes (B2) at Libor plus 470 bps and $56 million of subordinated notes.
Morgan Stanley & Co. LLC arranged the offering.
Sound Point Capital Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to purchase a $600 million portfolio of primarily leveraged loans.
In 2013, the firm sold the $400 million Sound Point CLO II Ltd./Sound Point CLO II LLC transaction, the $420.75 million Sound Point CLO III, Ltd. offering and the $635.3 million Sound Point CLO IV Ltd./Sound Point CLO IV LLC deal.
| Issuer: | Sound Point CLO V, Ltd./Sound Point CLO V Inc.
|
| Amount: | $628 million
|
| Maturity: | April 21, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | 2016
|
| Settlement date: | March 31
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class A notes
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| Amount: | $390 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 157 bps
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1 notes
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| Amount: | $37 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 190 bps
|
| Rating: | Moody's: Aa2
|
|
|
| Class B-2 notes
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| Amount: | $30 million
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| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.28%
|
| Rating: | Moody's: Aa2
|
|
|
| Class C notes
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| Amount: | $32.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody's: A2
|
|
|
| Class D notes
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| Amount: | $35.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Rating: | Moody's: Baa3
|
|
|
| Class E notes
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| Amount: | $27 million
|
| Securities: | Junior secured deferrable floating-rate notes
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| Coupon: | Libor plus 425 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Class F notes
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| Amount: | $16 million
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| Securities: | Junior secured deferrable floating-rate notes
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| Coupon: | Libor plus 470 bps
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| Rating: | Moody's: B2
|
|
|
| Equity tranche
|
| Amount: | $56 million
|
| Securities: | Subordinated notes
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| Ratings: | Non-rated
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