By Cristal Cody
Tupelo, Miss., Aug. 21 – Invesco Senior Secured Management, Inc. priced $513.5 million of notes due Oct. 20, 2027 in the firm’s second collateralized loan obligation transaction of 2015, according to a market source.
Recette CLO, Ltd./Recette CLO, LLC sold $185 million of class A-1 floating-rate notes, $100 million of class A-2 floating-rate notes and $40 million of class A-L loans, which include a conversion option to convert all or a portion of the loans into class A-C floating-rate notes, at Libor plus 143 basis points.
The CLO also priced $30 million of class B-1 floating-rate notes at Libor plus 210 bps; $25 million of 4.04% class B-2 fixed-rate notes; $27.5 million of class C floating-rate notes at Libor plus 280 bps; $27.5 million of class D floating-rate notes at Libor plus 375 bps; $25 million of class E floating-rate notes at Libor plus 570 bps; $10 million of class F floating-rate notes at Libor plus 745 bps and $43.5 million of subordinated notes.
BofA Merrill Lynch arranged the deal.
Invesco will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The transaction is collateralized primarily by senior secured loans.
Proceeds from the transaction will be used to purchase assets to reach a target portfolio of about $500 million of mostly senior secured leveraged loans.
Invesco Senior Secured Management previously was in the market in February with the $618 million Betony CLO Ltd./Betony CLO LLC offering.
The subsidiary of Atlanta-based Invesco, Ltd. priced two CLO deals in 2014.
| Issuer: | Recette CLO, Ltd./Recette CLO, LLC
|
| Amount: | $513.5 million
|
| Maturity: | Oct. 20, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Invesco Senior Secured Management, Inc.
|
| Call feature: | Two years
|
| Settlement date: | Sept. 16
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $185 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 143 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $100 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 143 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-L loans
|
| Amount: | $40 million
|
| Securities: | Loans
|
| Coupon: | Libor plus 143 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.04%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $27.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $27.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 570 bps
|
| Ratings: | Non-rated
|
|
|
| Class F notes
|
| Amount: | $10 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 745 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $43.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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