By Cristal Cody
Tupelo, Miss., June 16 – Octagon Credit Investors, LLC priced $608,965,000 of notes due July 15, 2027 in a collateralized loan obligation transaction, according to a market source.
Octagon Investment Partners XXIII, Ltd./Octagon Investment Partners XXIII, LLC sold $193.8 million of class A-1 floating-rate notes Libor plus 142 basis points; $193.8 million of class A-2 floating-rate notes at Libor plus 142 bps; $66.6 million of class B floating-rate notes at Libor plus 200 bps; $36.6 million of class C floating-rate notes at Libor plus 275 bps; $34.2 million of class D floating-rate notes at Libor plus 375 bps; $4 million of class E-1 floating-rate notes at Libor plus 545 bps; $23 million of class E-2 floating-rate notes at Libor plus 650 bps; $12 million of class F floating-rate notes at Libor plus 660 bps and $44,965,000 of subordinated notes.
Wells Fargo Securities, LLC was the placement agent.
Octagon Credit Investors will manage the CLO.
The CLO has a 1.3-year non-call period and a four-year reinvestment period.
The transaction is baked primarily by first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of about $600 million of mainly senior secured leveraged loans.
Octagon Credit Investors previously priced the $758.9 million Octagon Investment Partners XXIV, Ltd. deal on April 14.
The New York-based affiliate of CCMP Capital Advisors, LLC brought four CLO transactions in 2014.
| Issuer: | Octagon Investment Partners XXIII, Ltd./Octagon Investment Partners XXIII, LLC
|
| Amount: | $608,965,000
|
| Maturity: | July 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | 1.3 years
|
| Pricing date: | June 16
|
| Settlement date: | July 15
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $193.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 142 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $193.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 142 bps
|
| Ratings: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $66.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $36.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $34.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Non-rated
|
|
|
| Class E-1 notes
|
| Amount: | $4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 545 bps
|
| Rating: | Non-rated
|
|
|
| Class E-2 notes
|
| Amount: | $23 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $12 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Rating: | Non-rated
|
|
|
| Equity
|
| Amount: | $44,965,000
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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