By Cristal Cody
Tupelo, Miss., Dec. 30 – Mariner Investment Group, LLC sold $502 million of notes due Jan. 17, 2023 in the Elm CLO 2014-1 Ltd./Elm CLO 2014-1 LLC offering, according to a market source.
The CLO priced $331 million of class A floating-rate notes at Libor plus 140 basis points; $38.25 million of class B-1 floating-rate notes at Libor plus 190 bps; $17 million of 3.54% class B-2 fixed-rate notes; $26.25 million of class C deferrable floating-rate notes at Libor plus 275 bps; $25.25 million of class D deferrable floating-rate notes at Libor plus 450 bps; $21 million of class E deferrable floating-rate notes at Libor plus 650 bps and $43.25 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
The CLO is non-callable for one year and does not have a reinvestment period.
The transaction is backed primarily by senior secured loans.
Proceeds from the deal will be used to purchase assets to reach a target portfolio of about $500 million of mostly leveraged loans.
Mariner Investment is an alternative asset management firm based in New York City.
Issuer: | Elm CLO 2014-1 Ltd./Elm CLO 2014-1 LLC
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Amount: | $502 million
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Maturity: | Jan. 17, 2023
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Securities: | Fixed-rate, floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | BofA Merrill Lynch
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Manager: | Mariner Investment Group, LLC
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Call feature: | Jan. 17, 2016
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Settlement date: | Dec. 30
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Distribution: | Rule 144A
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Class A notes
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Amount: | $331 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 140 bps
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Ratings: | Standard & Poor’s: AAA
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| Fitch: AAA
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Class B-1 notes
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Amount: | $38.25 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 190 bps
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Rating: | Standard & Poor’s: AA
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Class B-2 notes
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Amount: | $17 million
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Securities: | Fixed-rate notes
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Coupon: | 3.54%
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Rating: | Standard & Poor’s: AA
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|
Class C notes
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Amount: | $26.25 million
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Securities: | Deferrable floating-rate notes
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Coupon: | Libor plus 275 bps
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Rating: | Standard & Poor’s: A
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Class D notes
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Amount: | $26.25 million
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Securities: | Deferrable floating-rate notes
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Coupon: | Libor plus 450 bps
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Rating: | Standard & Poor’s: BBB
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Class E notes
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Amount: | $21 million
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Securities: | Deferrable floating-rate notes
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Coupon: | Libor plus 650 bps
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Rating: | Standard & Poor’s: BB-
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Equity tranche
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Amount: | $43.25 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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