By Cristal Cody
Eureka Springs, Ark., April 29 – Sound Point Capital Management LP priced $512.5 million of notes due July 20, 2028 in the Sound Point CLO XI, Ltd./Sound Point CLO XI LLC transaction, according to a market source on Friday.
The broadly syndicated CLO sold $322.5 million of class A floating-rate notes at Libor plus 165 basis points; $27.5 million of class B-1 floating-rate notes at Libor plus 240 bps; $30 million of 3.962% class B-2 fixed-rate notes; $30 million of class C floating-rate notes at Libor plus 320 bps; $25 million of class D floating-rate notes at Libor plus 465 bps; $25 million of class E floating-rate notes at Libor plus 695 bps and $52.5 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
Sound Point Capital will manage the CLO, which has a two-year non-call period and a four-year reinvestment period.
Proceeds from the deal will be used to purchase a portfolio of $500 million of primarily senior secured leveraged loans.
The CLO is backed mainly by first-lien senior secured loans.
Sound Point Capital, a New York-based asset management firm, priced three CLO deals in 2015.
| Issuer: | Sound Point CLO XI, Ltd./Sound Point CLO XI Inc.
|
| Amount: | $512.5 million
|
| Maturity: | July 20, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Two years
|
| Pricing date: | April 27
|
| Settlement date: | May 26
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $322.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $27.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $30 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.962%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 320 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 465 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 695 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $52.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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