By Cristal Cody
Tupelo, Miss., Oct. 27 – Invesco Senior Secured Management, Inc. refinanced $435 million of notes due Oct. 20, 2027 in four tranches from the vintage 2015 Recette CLO, Ltd./Recette CLO LLC transaction, according to a market source and a notice of executed first supplemental indenture on Thursday.
The CLO priced $325 million of class A-R senior secured floating-rate notes at Libor plus 92 basis points, $55 million of class B-R senior secured floating-rate notes at Libor plus 130 bps, $27.5 million of class C-R deferrable mezzanine secured floating-rate notes at Libor plus 170 bps and $27.5 million of class D-R deferrable mezzanine secured floating-rate notes at Libor plus 275 bps.
BofA Merrill Lynch was the refinancing agent.
Invesco will continue to manage the CLO.
In the original $513.5 million transaction issued Sept. 16, 2015, the CLO 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 included a conversion option to convert all or a portion of the loans into class A-C floating-rate notes, at Libor plus 143 bps.
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.
Proceeds from the refinancing were used to redeem the original class A-1, A-2, A-L loans, B-1, B-2, C and D notes. The class E, F and subordinated notes will remain outstanding.
Invesco Senior Secured Management is a subsidiary of Atlanta-based Invesco, Ltd.
| Issuer: | Recette CLO, Ltd./Recette CLO LLC
|
| Amount: | $435 million refinancing
|
| Maturity: | Oct. 20, 2027
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BofA Merrill Lynch
|
| Manager: | Invesco Senior Secured Management, Inc.
|
| Settlement date: | Oct. 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $325 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 92 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-R notes
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| Amount: | $55 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
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| Amount: | $27.5 million
|
| Securities: | Deferrable mezzanine secured floating-rate notes
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| Coupon: | Libor plus 170 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D-R notes
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| Amount: | $27.5 million
|
| Securities: | Deferrable mezzanine secured floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: Baa3
|
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