By Cristal Cody
Tupelo, Miss., July 29 – Carlyle Investment Management LLC sold $815.8 million of notes due Aug. 18, 2026 in a new collateralized loan obligation transaction, according to a market source.
Carlyle Global Market Strategies CLO 2014-3, Ltd./Carlyle Global Market Strategies CLO 2014-3 LLC priced $359.4 million of class A-1A senior secured floating-rate notes (Aaa//AAA) at Libor plus 146 basis points, $155 million of class A-1B senior secured floating-rate notes (Aaa//AAA) at Libor plus 133.5 bps and $90 million of class A-2 senior secured floating-rate notes (Aa2) at Libor plus 210 bps.
The CLO sold $38 million of class B senior secured deferrable floating-rate notes (A2) at Libor plus 315 bps; $34 million of class C-1 senior secured deferrable floating-rate notes (Baa3) at Libor plus 370 bps; $10 million of class C-2 senior secured deferrable floating-rate notes (Baa3) at Libor plus 420 bps; $42.3 million of class D-1 senior secured deferrable floating-rate notes (Ba3) at Libor plus 510 bps; $6 million of class D-2 senior secured deferrable floating-rate notes (Ba3) at Libor plus 625 bps and $6.7 million of class E senior secured deferrable floating-rate notes (B3) at Libor plus 605 bps.
The offering included $74.4 million of subordinated notes in the equity tranche.
Citigroup Global Markets Inc. was the placement agent.
Carlyle Investment Management will manage the CLO, which is secured 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 from the deal will be used to purchase a portfolio of about $800 million of mostly senior secured leveraged loans.
The CLO manager, part of the Washington, D.C.-based Carlyle Group, has priced two U.S. CLO transactions in 2014, including the $617.5 million Carlyle Global Market Strategies CLO 2014-2, Ltd./Carlyle Global Market Strategies CLO 2014-2 LLC deal on May 23.
| Issuer: | Carlyle Global Market Strategies CLO 2014-3, Ltd./Carlyle Global Market Strategies CLO 2014-3 LLC
|
| Amount: | $815.8 million
|
| Maturity: | Aug. 18, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Carlyle Investment Management LLC
|
| Call feature: | 2016
|
| Pricing date: | July 29
|
| Settlement date: | Aug. 25
|
| Distribution: | Rule 144A
|
|
|
| Class A-1A notes
|
| Amount: | $359.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 146 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $155 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 133.5 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $90 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $38 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 315 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-1 notes
|
| Amount: | $34 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class C-2 notes
|
| Amount: | $10 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 420 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-1 notes
|
| Amount: | $42.3 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 510 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class D-2 notes
|
| Amount: | $6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class E notes
|
| Amount: | $6.7 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 605 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity tranche
|
| Amount: | $74.4 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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