By Cristal Cody
Tupelo, Miss., Aug. 19 – OFS Capital Management LLC sold $414.6 million of notes due Oct. 15, 2026 in a collateralized loan obligation offering, according to a market source.
OFSI Fund VII Ltd./OFSI Fund VII LLC priced $2 million of class X floating-rate notes (/AAA/) at Libor plus 100 basis points and $238.8 million of class A floating-rate notes (/AAA/) at Libor plus 134 bps.
The CLO sold $59 million of class B deferrable floating-rate notes (/AA/) at Libor plus 213 bps; $28.8 million of class C deferrable floating-rate notes (/A/) at Libor plus 297 bps; $20.6 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 500 bps; $17 million of class E deferrable floating-rate notes (/BB/) at Libor plus 725 bps and $7.2 million of class F deferrable floating-rate notes (/B/) at Libor plus 565 bps.
The offering included $41.2 million of subordinated notes in the equity tranche.
Nomura Securities International Inc. was the placement agent.
OFS Capital Management will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The offering is backed primarily by broadly syndicated senior secured corporate loans.
OFS Capital Management, a Chicago-based investment arm of Orchard First Source Asset Management LLC, priced the $683 million OFSI Fund VI Ltd. transaction in February.
| Issuer: | OFSI Fund VII Ltd./OFSI Fund VII LLC
|
| Amount: | $414.6 million
|
| Maturity: | Oct. 15, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Nomura Securities International Inc.
|
| Manager: | OFS Capital Management LLC
|
| Call feature: | 2016
|
| Pricing date: | Aug. 7
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Rating: | Standard & Poor’s: AAA
|
|
|
| Class A notes
|
| Amount: | $238.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 134 bps
|
| Ratings: | Moody’s: Aaa (expected)
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $59 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 213 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $28.8 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 297 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $20.6 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $17 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 725 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Class F notes
|
| Amount: | $7.2 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 565 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $41.2 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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