By Cristal Cody
Eureka Springs, Ark., May 17 – Additional details emerged about Black Diamond Capital Management, LLC’s new $359.6 million broadly syndicated collateralized loan obligation offering, set to close on Wednesday, according to a market source.
Black Diamond CLO 2016-1, Ltd. sold $193.5 million of class A-1a senior secured floating-rate notes at Libor plus 165 basis points, $20 million of 2.95% class A-1b senior secured fixed-rate notes, $37.5 million of class A-2a senior secured floating-rate notes at Libor plus 265 bps and $11.5 million of 4.23% class A-2b senior secured fixed-rate notes.
The CLO also priced $27.5 million of class B senior secured deferrable floating-rate notes at Libor plus 335 bps, $15.4 million of class C senior secured deferrable floating-rate notes at Libor plus 485 bps, $15.9 million of class D secured deferrable floating-rate notes at Libor plus 815 bps and $38.3 million of subordinated notes.
J.P. Morgan Securities LLC was the placement agent.
Black Diamond affiliate Black Diamond CLO 2016-1 Adviser, LLC will manage the CLO.
The notes are due May 18, 2028.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is backed primarily by broadly syndicated senior secured loans.
Black Diamond was last in the U.S. CLO primary market in 2014.
The alternative asset management firm is based in Greenwich, Conn.
| Issuer: | Black Diamond CLO 2016-1, Ltd.
|
| Amount: | $359.6 million
|
| Maturity: | May 18, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Black Diamond CLO 2016-1 Adviser, LLC
|
| Call feature: | May 18, 2018
|
| Pricing date: | April 29
|
| Settlement date: | May 18
|
|
|
| Class A-1a notes
|
| Amount: | $193.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1b notes
|
| Amount: | $20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.95%
|
| Rating: | S&P: AAA
|
|
|
| Class A-2a notes
|
| Amount: | $37.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Rating: | S&P: AA
|
|
|
| Class A-2b notes
|
| Amount: | $11.5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.23%
|
| Rating: | S&P: AA
|
|
|
| Class B notes
|
| Amount: | $27.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 335 bps
|
| Rating: | S&P: A
|
|
|
| Class C notes
|
| Amount: | $15.4 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 485 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D notes
|
| Amount: | $15.9 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 815 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $38.3 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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