By Cristal Cody
Tupelo, Miss., Aug. 20 – Marathon Asset Management LP sold $463.17 million of notes in a reset and refinancing of a vintage 2015 collateralized loan obligation offering, according to a market source.
Marathon CLO VIII Ltd./Marathon CLO VIII LLC priced $283.5 million of class A-1-R senior secured floating-rate notes at Libor plus 125 basis points; $56.25 million of class A-2-R senior secured floating-rate notes at Libor plus 190 bps; $24.75 million of B-R senior secured floating-rate notes at Libor plus 250 bps; $27 million of class C-R senior secured deferrable floating-rate notes at Libor plus 353 bps, $22 million of class C-R senior secured deferrable floating-rate notes at Libor plus 353 bps, $22 million of class D-R secured deferrable floating-rate notes at Libor plus 644 bps and $49.67 million of subordinated notes.
BofA Merrill Lynch was the refinancing placement agent.
Marathon Asset Management will manage the CLO.
The maturity on the refinanced notes was extended to Oct. 18, 2031 from the original July 24, 2028 maturity.
The refinanced CLO has a two-year non-call period and a five-year reinvestment period.
In the original Marathon CLO VIII transaction that was issued July 24, 2015, the CLO priced $120 million of class A-1a senior secured floating-rate notes at Libor plus 149 bps, $143.5 million of class A-1b senior secured floating-rate notes at Libor plus 149 bps, $20 million of 3.48% class A-1c senior secured fixed-rate notes and $63 million of class A-2 senior secured floating-rate notes at Libor plus 200 bps.
The CLO also had priced $19.2 million of class B senior secured deferrable floating-rate notes at Libor plus 295 bps, $26.7 million of class C senior secured deferrable floating-rate notes at Libor plus 405 bps, $21.6 million of class D secured deferrable floating-rate notes at Libor plus 605 bps and $47.37 million of subordinated notes.
Proceeds will be used to redeem the original notes.
The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Marathon Asset Management is a New York City-based global credit manager.
| Issuer: | Marathon CLO VIII Ltd./Marathon CLO VIII LLC
|
| Amount: | $463.17 million refinancing
|
| Maturity: | Oct. 18, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BofA Merrill Lynch
|
| Manager: | Marathon Asset Management LP
|
| Call feature: | Two years
|
| Pricing date: | Aug. 14
|
| Settlement date: | Sept. 18
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-R notes
|
| Amount: | $283.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $56.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-R notes
|
| Amount: | $24.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | Non-rated
|
|
|
| Class C-R notes
|
| Amount: | $27 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 353 bps
|
| Ratings: | Non-rated
|
|
|
| Class D-R notes
|
| Amount: | $22 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 644 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $49.67 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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