By Cristal Cody
Tupelo, Miss., July 16 – CBAM CLO Management LLC priced and closed on $756 million of notes due July 2031 in a new broadly syndicated collateralized loan obligation deal, according to a market source and a company news release.
CBAM 2018-7, Ltd./CBAM 2018-7 LLC sold $480 million of class A floating-rate notes at Libor plus 110 basis points; $54,375,000 of class B-1 floating-rate notes at Libor plus 160 bps; $29.25 million of class B-2 floating-rate notes at Libor plus 160 bps; $38,625,000 of class C deferrable floating-rate notes at Libor plus 190 bps; $50.25 million of class D deferrable floating-rate notes at Libor plus 280 bps; $37.5 million of class E deferrable floating-rate notes at Libor plus 550 bps and $66 million of subordinated notes.
BofA Merrill Lynch was the lead arranger.
The CLO has a two-year non-call period and a five-year reinvestment period.
CBAM CLO Management has priced four CLOs year to date.
The latest deal brings the CLO manger’s total CLO issuance to $7.9 billion since the close of its first CLO in June 2017, according to the release. As of July, CBAM said it was the second largest issuer of new CLOs in 2018 at $2.8 billion. In 2017, CBAM was the largest U.S. issuer of new CLOs at $5.1 billion.
The New York City-based portfolio company of private investment firm Eldridge Industries placed three $1 billion-plus CLO transactions in 2017.
| Issuer: | CBAM 2018-7, Ltd./CBAM 2018-7 LLC
|
| Amount: | $756 million
|
| Maturity: | July 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | CBAM CLO Management LLC
|
| Call feature: | Two years
|
| Pricing date: | June 8
|
| Closing date: | July 12
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A notes
|
| Amount: | $480 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 110 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $54,375,000
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-2 notes
|
| Amount: | $29.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $38,625,000
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $50.25 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $37.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 550 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $66 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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