By Cristal Cody
Eureka Springs, Ark., July 18 – Sound Point Capital Management LP priced $722.5 million of notes due Oct. 20, 2028 in the Sound Point CLO XII, Ltd./Sound Point CLO XII LLC transaction, according to a market source.
The CLO sold $5.25 million of class X floating-rate notes at Libor plus 125 basis points; $451.5 million of class A floating-rate notes at Libor plus 166 bps; $55.5 million of class B-1 floating-rate notes at Libor plus 225 bps; $25 million of 3.48% class B-2 fixed-rate notes; $42 million of class C floating-rate notes at Libor plus 290 bps; $35 million of class D floating-rate notes at Libor plus 425 bps; $35 million of class E floating-rate notes at Libor plus 640 bps and $73.25 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.
The CLO is backed primarily by first lien senior secured loans.
Proceeds will be used to purchase a $700 million portfolio of mostly senior secured leveraged loans.
Sound Point Capital has been in the primary market with two CLO deals in 2016.
The New York-based asset management firm priced three CLO transactions in 2015.
| Issuer: | Sound Point CLO XII, Ltd./Sound Point CLO XII Inc.
|
| Amount: | $722.5 million
|
| Maturity: | Oct. 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: | July 13
|
| Settlement date: | Aug. 16
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $5.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Ratings: | Moody’s: Aaa Expected
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $451.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 166 bps
|
| Ratings: | Moody’s: Aaa Expected
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $55.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Ratings: | Moody’s: | Aa2 Expected
|
| Fitch: AA
|
|
|
| Class B-2 notes
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| Amount: | $25 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.48%
|
| Ratings: | Moody’s: Aa2 Expected
|
|
|
| Class C notes
|
| Amount: | $42 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Ratings: | Moody’s: A2 Expected
|
|
|
| Class D notes
|
| Amount: | $35 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Ratings: | Moody’s: Baa3 Expected
|
|
|
| Class E notes
|
| Amount: | $35 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 640 bps
|
| Ratings: | Moody’s: Ba3 Expected
|
|
|
| Equity
|
| Amount: | $73.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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