By Cristal Cody
Tupelo, Miss., Nov. 16 – CBAM CLO Management LLC sold $1,008,000,000 of notes due Jan. 15, 2031 in a new collateralized loan obligation deal, according to market sources.
CBAM 2017-4, Ltd./CBAM 2017-4 LLC priced $10 million of class X floating-rate notes at Libor plus 60 basis points; $640 million of class A floating-rate notes at Libor plus 120 bps; $54.47 million of class B-1 floating-rate notes at Libor plus 145 bps; $60.53 million of class B-2 floating-rate notes at Libor plus 145 bps; $55 million of class C floating-rate notes at Libor plus 175 bps; $65 million of class D floating-rate notes at Libor plus 260 bps; $45 million of class E floating-rate notes at Libor plus 580 bps and $78 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
CBAM CLO Management will manage the CLO.
The notes have a two-year non-call period and a five-year reinvestment period.
The CLO is collateralized mainly by first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of about $1 billion of mostly first-lien senior secured leveraged loans.
CBAM, an affiliate of New York-based asset management firm CBAM Partners, LLC, has priced three $1 billion-plus CLO transactions year to date.
| Issuer: | CBAM 2017-4, Ltd./CBAM 2017-4 LLC
|
| Amount: | $1,008,000,000
|
| Maturity: | Jan. 15, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | CBAM CLO Management LLC
|
| Call feature: | Two years
|
| Pricing date: | Nov. 2
|
| Settlement date: | Dec. 6
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $10 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 60 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $640 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $54.47 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $60.53 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $55 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $65 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $45 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 580 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $78 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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