By Cristal Cody
Tupelo, Miss., May 2 – Octagon Credit Investors, LLC priced $562.5 million of notes due July 15, 2027 in a refinancing of the Octagon Investment Partners XXIII, Ltd./Octagon Investment Partners XXIII, LLC transaction, according to a notice of executed supplemental indenture on Tuesday.
The CLO sold $390 million of class A-1-R senior secured floating-rate notes at Libor plus 85 basis points, $18 million of class A-2-R senior secured floating-rate notes at Libor plus 100 bps and $51 million of class B-R senior secured floating-rate notes at Libor plus 120 bps.
Octagon Investment Partners XXIII also sold $33.75 million of class C-R secured deferrable floating-rate notes at Libor plus 185 bps; $31.75 million of class D-R secured deferrable floating-rate notes at Libor plus 255 bps; $29 million of class E-R secured deferrable floating-rate notes at Libor plus 575 bps and $9 million of class F-R secured deferrable floating-rate notes at Libor plus 717 bps.
Morgan Stanley & Co. LLC arranged the offering.
Octagon Credit Investors will continue to manage the CLO.
In the original $608.97 million transaction issued July 15, 2015, the CLO sold $193.8 million of class A-1 floating-rate notes Libor plus 142 bps; $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.
Proceeds were used to redeem the original notes.
The notes are backed primarily by broadly syndicated senior secured corporate loans.
Octagon Credit Investors has priced two new CLOs and refinanced a vintage CLO year to date.
In 2017, the CLO manager brought four new CLOs to the primary market.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners XXIII, Ltd./Octagon Investment Partners XXIII, LLC
|
| Amount: | $562.5 million refinancing
|
| Maturity: | July 15, 2027
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Settlement date: | April 26
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-R notes
|
| Amount: | $390 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 85 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $18 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B-R notes
|
| Amount: | $51 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $33.75 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
|
| Amount: | $31.75 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 255 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-R notes
|
| Amount: | $29 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 575 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F-R notes
|
| Amount: | $9 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 717 bps
|
| Rating: | Moody’s: B3
|
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