By Cristal Cody
Tupelo, Miss., Nov. 24 – CLO manager Sankaty Advisors LLC priced $408.48 million of notes due Dec. 15, 2028 in the Avery Point CLO VII, Ltd./Avery Point CLO VII, Corp. transaction, according to a market source.
The CLO sold $232 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Libor plus 150 basis points and $20 million of 3.2% class A-2 senior secured fixed-rate notes (Aaa//AAA) at the top of the structure.
The CLO also priced $45.7 million of class B senior secured floating-rate notes (Aa2) at Libor plus 220 bps; $21.8 million of class C senior secured deferrable floating-rate notes (A2) at Libor plus 295 bps; $26.65 million of class D senior secured deferrable floating-rate notes (Baa3) at Libor plus 415 bps; $21.2 million of class E senior secured deferrable floating-rate notes (Ba3) at Libor plus 660 bps; $7.2 million of class F senior secured deferrable floating-rate notes (B3) at Libor plus 800 bps and $33.93 million of subordinated notes.
J.P. Morgan Securities LLC was the placement agent.
The CLO has a three-year non-call period and a five-year reinvestment period.
The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Sankaty has been in the primary market with three CLO deals in 2015.
The Boston-based alternative investment firm priced two CLO transactions in 2014.
| Issuer: | Avery Point CLO VII, Ltd./Avery Point CLO VII, Corp.
|
| Amount: | $408.48 million
|
| Maturity: | Dec. 15, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Sankaty Advisors LLC
|
| Call feature: | Three years
|
| Pricing date: | Nov. 16
|
| Settlement date: | Dec. 15
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $232 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.2%
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
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| Amount: | $45.7 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
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| Amount: | $21.8 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 295 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $26.65 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 415 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $21.2 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
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| Amount: | $7.2 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 800 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $33.93 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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