CreekSource plans $305.7 million refinancing of notes from 2015 Bean Creek CLO

By Cristal Cody

Tupelo, Miss., April 3 – CreekSource LLC intends to price $305.7 million of notes in a refinancing and reset of the vintage 2015 Bean Creek CLO, Ltd./Bean Creek CLO LLC deal during the first week of April, according to a news release on Tuesday.

Price guidance was offered for the six tranches of floating-rate notes.

The $3 million of class X-R floating-rate notes (Aaa expected) were talked to price at Libor plus 60 basis points, while the $196.5 million tranche of class A-R floating-rate notes (Aaa expected//AAA expected) was talked to price in the Libor plus 100 bps to 102 bps area.

The $31.5 million of class B-R floating-rate notes (Aa2 expected) were talked to price in the Libor plus 140 bps to 145 bps area.

CreekSource talked the $18 million of class C-R floating-rate notes (A2 expected) to price in the Libor plus 185 bps to 190 bps area.

Price guidance on the $17.25 million of class D-R floating-rate notes (Baa3 expected) was in the Libor plus 260 bps to 265 bps area.

In the final tranche, the $12.75 million of class E-R floating-rate notes (Ba3 expected) were talked to price in the Libor plus 565 bps to 575 bps area.

The deal includes $26.7 million of subordinated notes.

Barclays is the arranger.

CreekSource will continue to manage the CLO.

The refinanced notes are expected to have a 13-year maturity.

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

The transaction is compliant with U.S. and European risk retention regulations.

Bean Creek CLO originally priced $305 million of notes due Jan. 20, 2028 in the offering on Dec. 1, 2015.

The CLO sold $2.8 million of class X floating-rate notes at Libor plus 162 bps; $196.5 million of class A floating-rate notes at Libor plus 162 bps; $14.9 million of class B-1 floating-rate notes at Libor plus 230 bps; $15 million of 4.07% class B-2 fixed-rate notes; $14.9 million of class C floating-rate notes at Libor plus 315 bps; $17.2 million of class D floating-rate notes at Libor plus 450 bps; $13.5 million of class E floating-rate notes at Libor plus 730 bps; $4 million of class F floating-rate notes at Libor plus 825 bps and $26.2 million of subordinated notes.

Proceeds will be used to redeem the original notes.

The deal is backed primarily by broadly syndicated first-lien senior secured loans.

The transaction is expected to close on April 20.

CreekSource is an affiliate of Carmel, Ind.-based investment management firm 40|86 Advisors, Inc.

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