By Cristal Cody
Tupelo, Miss., May 4 – Sound Point Capital Management LP priced $456.5 million of notes due Jan. 21, 2026 in a refinancing of the vintage 2013 Sound Point CLO IV, Ltd./Sound Point CLO IV, Inc. transaction, according to details from a notice of executed second supplemental indenture.
The CLO sold $390 million of class A-R senior secured floating-rate notes at Libor plus 110 basis points, $34 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 225 bps and $32.5 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 340 bps.
Morgan Stanley & Co. LLC arranged the deal.
Sound Point Capital will continue to manage the CLO.
In the original transaction priced in December 2013, the CLO sold $390 million of class A senior floating-rate notes at Libor plus 137 bps; $5 million in class X senior floating-rate notes at Libor plus 100 bps; $69 million of class B senior floating-rate notes at Libor plus 160 bps; $34 million of class C floating-rate mezzanine notes at Libor plus 235 bps; $32.5 million of class D floating-rate mezzanine notes at Libor plus 350 bps; $26.5 million of class E junior floating-rate notes at Libor plus 450 bps $16.5 million of class F junior floating-rate notes at Libor plus 495 bps and $61.75 million of subordinated notes.
Proceeds from the refinancing were used to redeem the original class A, C and D notes.
The deal is collateralized primarily by broadly syndicated senior secured corporate loans.
Sound Point Capital has refinanced six vintage CLOs year to date.
The New York-based asset management firm priced three new CLO deals in 2016.
| Issuer: | Sound Point CLO IV, Ltd./Sound Point CLO IV, Inc.
|
| Amount: | $456.5 million refinancing
|
| Maturity: | Jan. 21, 2026
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Sound Point Capital Management LP
|
| Settlement date: | April 21
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $390 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 110 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class C-R notes
|
| Amount: | $34 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: A1
|
|
|
| Class D-R notes
|
| Amount: | $32.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Rating: | Moody’s: Baa2
|
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