By Cristal Cody
Tupelo, Miss., March 1 – MJX Asset Management LLC priced $740 million of 2017 notes in a refinancing and reset of the 2013 Venture XII CLO, Ltd./Venture XII CLO, LLC transaction, according to a market source and a notice of executed supplemental indenture dated Tuesday.
The CLO sold $475 million of class A-R senior secured floating-rate notes at Libor plus 123 basis points, $70 million of class B-R senior secured floating-rate notes at Libor plus 163 bps; $43 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 240 bps; $36 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 370 bps; $42 million of class E-R junior secured deferrable floating-rate notes at Libor plus 620 bps and $74 million of subordinated notes as equity.
Jefferies LLC arranged the transaction.
MJX subsidiary MJX Venture Management LLC will continue to manage the CLO.
The refinanced CLO has an extended maturity, reinvestment period, non-call period and a maximum weighted average life.
The maturity was extended by two years to Feb. 28, 2026.
The non-call period was extended from Feb. 28, 2015 to Feb. 28, 2018. The reinvestment period was extended from Feb. 28, 2017 to Feb. 28, 2019. The maximum weighted average life was extended by three years to Feb. 28, 2023.
Proceeds from the transaction, backed mostly by broadly syndicated first-lien senior secured corporate loans, were used to redeem the original notes on Tuesday.
The New York City-based asset management firm priced three new CLO transactions and refinanced three CLOs in 2016.
| Issuer: | Venture XII CLO, Ltd./Venture XII CLO, LLC
|
| Amount: | $740 million refinancing
|
| Maturity: | Feb. 28, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Jefferies LLC
|
| Manager: | MJX Venture Management LLC
|
| Call feature: | Feb. 28, 2018
|
| Pricing date: | Feb. 14
|
| Settlement date: | Feb. 28
|
|
|
| Class A-R notes
|
| Amount: | $475 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 123 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $70 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 163 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $43 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $36 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | S&P: BBB
|
|
|
| Class E-R notes
|
| Amount: | $42 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 620 bps
|
| Rating: | S&P: BB
|
|
|
| Equity
|
| Amount: | $74 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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