By Cristal Cody
Tupelo, Miss., May 15 – MidOcean Credit Fund Management LP priced $368 million of notes due Jan. 20, 2029 in a refinancing of a vintage 2016 broadly syndicated collateralized loan obligation transaction, according to a market source and a notice of revised proposed second supplemental indenture on Tuesday.
MidOcean Credit CLO VI/MidOcean Credit CLO VI LLC sold $242 million of class A-R floating-rate notes (Aaa expected) at Libor plus 125 basis points; $58 million of class B floating-rate notes (Aa2 expected) at Libor plus 190 bps; $26 million of class C deferrable floating-rate notes (A2 expected) at Libor plus 270 bps; $22 million of class D deferrable floating-rate notes (Baa3 expected) at Libor plus 375 bps and $20 million of class E deferrable floating-rate notes (Ba3 expected) at Libor plus 690 bps.
The refinanced CLO has an extended one-year non-call period and a two-year reinvestment period.
The original $402.7 million transaction was priced Nov. 8, 2016 and issued Dec. 20, 2016 via Jefferies LLC.
The CLO had sold $242 million of class A floating-rate notes at Libor plus 158 bps; $58 million of class B floating-rate notes at Libor plus 223 bps; $26 million of class C floating-rate notes at Libor plus 315 bps; $22 million of class D floating-rate notes at Libor plus 480 bps; $20 million of class E floating-rate notes at Libor plus 870 bps and $34.7 million of income notes.
Proceeds will be used to redeem the outstanding notes. The equity tranche of income notes will remain outstanding.
The CLO manager is an affiliate of New York City-based private equity firm MidOcean Partners.
| Issuer: | MidOcean Credit CLO VI/MidOcean Credit CLO VI LLC
|
| Amount: | $368 million refinancing
|
| Securities: | Floating-rate notes
|
| Maturity: | Jan. 20, 2029
|
| Structure: | Cash flow CLO
|
| Manager: | MidOcean Credit Fund Management LP
|
| Call feature: | One year
|
| Pricing date: | May 6
|
| Settlement date: | May 29
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $242 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Rating: | Moody’s: Aaa expected
|
|
|
| Class B-R notes
|
| Amount: | $58 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C-R notes
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| Amount: | $26 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 270 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D-R notes
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| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 375 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E-R notes
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| Amount: | $20 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 690 bps
|
| Rating: | Moody’s: Ba3 expected
|
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