By Cristal Cody
Tupelo, Miss., March 15 – CBAM CLO Management LLC sold $1,000,750,000 of notes due April 17, 2031 in a new broadly syndicated collateralized loan obligation deal, according to market sources.
CBAM 2018-5, Ltd./CBAM 2018-5 LLC priced $6 million of class X floating-rate notes at Libor plus 55 basis points; $640 million of class A floating-rate notes at Libor plus 102 bps; $89.68 million of class B-1 floating-rate notes at Libor plus 140 bps; $30.32 million of class B-2 floating-rate notes at Libor plus 140 bps; $18.8 million of class C floating-rate notes at Libor plus 175 bps; $62.5 million of class D floating-rate notes at Libor plus 250 bps; $45 million of class E floating-rate notes at Libor plus 515 bps and $74.75 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
CBAM CLO Management will manage the CLO.
The class A notes have a 1.5-year non-call period, while the remaining tranches have a two-year non-call period. The CLO has a five-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $1 billion of mostly first-lien senior secured leveraged loans.
The issue is collateralized primarily by first-lien senior secured loans.
CBAM, an affiliate of New York-based asset management firm CBAM Partners, LLC, priced three $1 billion-plus CLO transactions in 2017.
| Issuer: | CBAM 2018-5, Ltd./CBAM 2018-5 LLC
|
| Amount: | $1,000,750,000
|
| Maturity: | April 17, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | CBAM CLO Management LLC
|
| Pricing date: | Feb. 23
|
| Settlement date: | March 29
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 55 bps
|
| Call feature: | Two years
|
| Rating: | Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $640 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 102 bps
|
| Call feature: | 1.5 years
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $89.68 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Call feature: | Two years
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $30.32 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Call feature: | Two years
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $52.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Call feature: | Two years
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $62.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Call feature: | Two years
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $45 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 515 bps
|
| Call feature: | Two years
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $74.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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