By Cristal Cody
Tupelo, Miss., May 6 - Symphony Asset Management LLC sold an $838 million collateralized loan obligation deal, according to a market source on Tuesday.
The Symphony CLO XIV, Ltd./Symphony CLO XIV LLC vehicle priced $5 million of class X floating-rate notes (//AAA) at Libor plus 100 basis points, $250 million of class A-1 floating-rate notes (//AAA) at Libor plus 137 bps, $236 million of class A-2 floating-rate notes (//AAA) at Libor plus 148 bps and $10 million of 3.5% class A-3 fixed-rate notes (//AAA) at the top of the capital structure.
The CLO also sold $73 million of class B-1 floating-rate notes at Libor plus 200 bps, $35 million of 4.4% class B-2 fixed-rate notes, $25 million of class C-1 floating-rate notes at Libor plus 295 bps, $15 million of 5.5% class C-2 fixed-rate notes, $26 million of class D-1 floating-rate notes at Libor plus 340 bps, $26 million of class D-2 floating-rate notes at Libor plus 360 bps, $48 million of class E floating-rate notes at Libor plus 460 bps and $16 million of class F floating-rate notes at Libor plus 500 bps.
The deal included $73 million of subordinated notes in the equity tranche.
Morgan Stanley & Co. LLC was the placement agent.
Symphony Asset Management will manage the CLO, which is backed primarily by first-lien senior secured corporate loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
The notes are due July 15, 2026.
Proceeds from the deal will be used to purchase a portfolio of about $800 million of primarily senior secured leveraged loans.
Symphony Asset Management, a San Francisco-based asset management firm, brought two CLO deals in 2013.
| Issuer: | Symphony CLO XIV, Ltd./Symphony CLO XIV LLC
|
| Amount: | $838 million
|
| Maturity: | July 15, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Symphony Asset Management LLC
|
| Call feature: | 2016
|
| Pricing date: | May 6
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $250 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 137 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $236 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 148 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-3 notes
|
| Amount: | $10 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.5%
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $73 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $35 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.4%
|
| Rating: | Non-rated
|
|
|
| Class C-1 notes
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 295 bps
|
| Rating: | Non-rated
|
|
|
| Class C-2 notes
|
| Amount: | $15 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 5.5%
|
| Rating: | Non-rated
|
|
|
| Class D-1 notes
|
| Amount: | $26 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Rating: | Non-rated
|
|
|
| Class D-2 notes
|
| Amount: | $26 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Rating: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 460 bps
|
| Rating: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $16 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $73 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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