By Cristal Cody
Tupelo, Miss., Oct. 18 – Madison Capital Funding LLC priced $395.75 million of notes in a refinancing and reset of a 2014 vintage middle-market CLO deal, according to a market source and a notice of executed supplemental indenture on Tuesday.
MCF CLO IV LLC sold $262.25 million of class A-R senior secured floating-rate notes at Libor plus 155 basis points; $37.5 million of class B-R senior secured floating-rate notes at Libor plus 200 bps; $35.5 million of class C-R secured deferrable floating-rate notes at Libor plus 265 bps; $30.5 million of class D-R secured deferrable floating-rate notes at Libor plus 400 bps and $30 million of class E-R secured deferrable floating-rate notes at Libor plus 645 bps.
Wells Fargo Securities, LLC arranged the offering.
Madison Capital Funding will remain the CLO manager.
The maturity on the refinanced notes was extended to Oct. 20, 2029 from the original Oct. 15, 2025 maturity.
MCF CLO IV has a new two-year non-call period and a four-year reinvestment period.
The CLO was originally issued on Nov. 13, 2014 and placed $228.5 million of class A floating-rate notes at Libor plus 170 bps at par; $34.25 million of class B floating-rate notes at Libor plus 245 bps at 98.46; $28.5 million of class C deferrable floating-rate notes at Libor plus 330 bps at 97.23; $28.5 million of class D deferrable floating-rate notes with a coupon of Libor plus 400 bps at 95.19; $28.5 million of class E deferrable floating-rate notes at Libor plus 590 bps at 90.37 and $57.71 million of interest notes.
The deal is backed primarily by middle-market senior secured loans.
Proceeds from the refinancing were used to redeem the original notes.
Madison Capital Funding is a Chicago-based middle-market finance company and subsidiary of New York Life Insurance Co.
| Issuer: | MCF CLO IV LLC
|
| Amount: | $395.75 million refinancing
|
| Maturity: | Oct. 20, 2029
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Wells Fargo Securities, LLC
|
| Manager: | Madison Capital Funding LLC
|
| Call feature: | Two years
|
| Settlement date: | Oct. 16
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $262.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class B-R notes
|
| Amount: | $37.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $35.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $30.5 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $30 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 645 bps
|
| Rating: | S&P: BB-
|
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