By Cristal Cody
Tupelo, Miss., March 13 – Mariner Investment Group, LLC priced a $440 million second refinancing of a vintage 2016 broadly syndicated collateralized loan obligation transaction, according to a market source.
Mariner CLO 2016-3 Ltd./Mariner CLO 2016-3 LLC sold $315 million of class A-R2 floating-rate notes (AAA) at Libor plus 99 basis points, $63 million of class B-R2 floating-rate notes (AA) at Libor plus 150 bps, $37 million of class C-R2 deferrable floating-rate notes (A) at Libor plus 205 bps and $25 million of class D-R2 deferrable floating-rate notes (BBB) at Libor plus 290 bps.
A tranche of class E-R2 deferrable floating-rate notes was dropped from the refinancing.
Citigroup Global Markets Inc. was the refinancing agent.
Mariner will continue to manage the CLO.
The notes are due July 23, 2029. The CLO has a one-year non-call period and a reinvestment period that ends in July 2021.
Mariner originally issued the $503.4 million CLO on Aug. 11, 2016. The CLO had priced $330 million of class A floating-rate notes at Libor plus 159 bps; $55 million of class B floating-rate notes at Libor plus 200 bps; $30 million of class C floating-rate notes at Libor plus 290 bps; $25 million of class D floating-rate notes at Libor plus 400 bps; $20 million of class E floating-rate notes at Libor plus 700 bps and $43.4 million of subordinated notes.
In the first refinancing issued July 24, 2017, the CLO priced $315 million of class A-R floating-rate notes at Libor plus 127 bps; $63 million of class B-R floating-rate notes at Libor plus 185 bps; $37 million of class C-R deferrable floating-rate notes at Libor plus 265 bps; $25 million of class D-R deferrable floating-rate notes at Libor plus 380 bps; $20 million of class E-R deferrable floating-rate notes at Libor plus 680 bps and $43.4 million of subordinated notes.
Proceeds from the refinancing will be used to redeem the outstanding notes.
The alternative asset management firm is based in New York City.
| Issuer: | Mariner CLO 2016-3 Ltd./Mariner CLO 2016-3 LLC
|
| Amount: | $440 million refinancing
|
| Maturity: | July 23, 2029
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Mariner Investment Group, LLC
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| Call feature: | One year
|
| Pricing date: | Feb. 14
|
| Settlement date: | March 4
|
|
|
| Class A-R2 notes
|
| Amount: | $315 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 99 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R2 notes
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| Amount: | $63 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R2 notes
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| Amount: | $37 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 205 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R2 notes
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| Amount: | $25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Ratings: | S&P: BBB
|
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