Bain Capital to refinance $374.55 million of notes from 2015 Avery Point CLO VII

By Cristal Cody

Tupelo, Miss., June 12 – Bain Capital Credit Ltd. plans to refinance $374.55 million of notes due Jan. 15, 2028 from the vintage 2015 Avery Point CLO VII, Ltd./Avery Point CLO VII, Corp. transaction, according to a market source and a notice of proposed second supplemental indenture on Friday.

The Rule 144A and Regulation S offering includes $252 million of class A-R senior secured floating-rate notes (expected ratings Aaa//AAA); $45.7 million of class B-R senior secured floating-rate notes (expected ratings Aa2); $21.8 million of class C-R senior secured deferrable floating-rate notes (expected ratings A2); $26.65 million of class D-R senior secured deferrable floating-rate notes (expected ratings Baa3); $21.2 million of class E-R senior secured deferrable floating-rate notes (expected ratings Ba3) and $7.2 million of class F-R senior secured deferrable floating-rate notes (expected ratings B3).

Credit Suisse Securities (USA) LLC is the refinancing placement agent.

Bain Capital, formerly known as Sankaty Advisors LP, will manage the CLO.

The non-call period on the refinanced notes will be extended to 2020. The reinvestment period will be extended to January 2022.

In the original $408.48 million transaction issued Dec. 22, 2015, the CLO priced $232 million of class A-1 senior secured floating-rate notes at Libor plus 150 basis points; $20 million of 3.2% class A-2 senior secured fixed-rate notes; $45.7 million of class B senior secured floating-rate notes at Libor plus 220 bps; $21.8 million of class C senior secured deferrable floating-rate notes at Libor plus 295 bps; $26.65 million of class D senior secured deferrable floating-rate notes at Libor plus 415 bps; $21.2 million of class E senior secured deferrable floating-rate notes at Libor plus 660 bps; $7.2 million of class F senior secured deferrable floating-rate notes at Libor plus 800 bps and $33.93 million of subordinated notes.

Proceeds will be used to redeem the original notes.

The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Bain Capital Credit is an asset management firm based in Boston.

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