By Cristal Cody
Tupelo, Miss., March 23 – Fortress Investment Group LLC sold $350 million of notes due March 31, 2027 in a middle-market collateralized loan obligation transaction, a source said.
Fortress Credit Opportunities VI CLO Ltd./Fortress Credit Opportunities VI CLO LLC priced $55.5 million of class A-1R revolving floating-rate notes at Libor plus 190 basis points; $59 million of class A-1T floating-rate notes at Libor plus 190 bps; $50 million of 3.51% class A-1F fixed-rate notes; $44.7 million of class B floating-rate notes at Libor plus 270 bps; $26.2 million of class C deferrable floating-rate notes at Libor plus 365 bps; $20.9 million of class D deferrable floating-rate notes at Libor plus 500 bps; $5.4 million of class E deferrable floating-rate notes at Libor plus 525 bps; $14.8 million of class F floating-rate notes at Libor plus 675 bps and $73.5 million of subordinated notes.
Natixis Securities America LLC arranged the transaction.
FCO VI CLO CM LLC will manage the CLO and enter into a services agreement with Drawbridge Special Opportunities Advisors LLC, a subsidiary of Fortress Investment Group.
The CLO has a non-call period that ends March 31, 2017. The reinvestment period ends on March 31, 2019.
The deal is backed primarily by middle-market senior secured corporate loans.
New York City-based Fortress Investment Group priced two CLO deals in 2014.
| Issuer: | Fortress Credit Opportunities VI CLO Ltd./Fortress Credit Opportunities VI CLO LLC
|
| Amount: | $350 million
|
| Maturity: | March 31, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Natixis Securities America LLC
|
| Manager: | FCO VI CLO CM LLC
|
| Call feature: | March 31, 2017
|
| Pricing date: | March 19
|
| Settlement date: | March 31
|
|
|
| Class A-1R notes
|
| Amount: | $55.5 million
|
| Securities: | Revolving floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | Moody’s: Aaa (expected)
|
| Standard & Poor’s: AAA
|
|
|
| Class A-1T notes
|
| Amount: | $59 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | Moody’s: Aaa (expected)
|
| Standard & Poor’s: AAA
|
|
|
| Class A-1F notes
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| Amount: | $50 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.51%
|
| Ratings: | Moody’s: Aaa (expected)
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
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| Amount: | $44.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 270 bps
|
| Ratings: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $26.2 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Ratings: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $20.9 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Ratings: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $5.4 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 525 bps
|
| Ratings: | Standard & Poor’s: BBB-
|
|
|
| Class F notes
|
| Amount: | $14.8 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 675 bps
|
| Ratings: | Standard & Poor’s: BB
|
|
|
| Equity
|
| Amount: | $73.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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