By Cristal Cody
Tupelo, Miss., Nov. 27 – CBAM CLO Management LLC refinanced $920 million of notes due Jan. 15, 2031 from a 2018 broadly syndicated collateralized loan obligation deal, according to a market source.
CBAM 2018-6, Ltd./CBAM 2018-6 LLC sold $610 million of class A-1-R floating-rate notes (expected ratings Aaa//AAA/Kroll: AAA) at Libor plus 127 basis points, $30 million of 2.832% class A-2-R fixed-rate notes (expected ratings Aaa//AAA/Kroll: AAA), $79,625,000 of class B-1-R floating-rate notes (expected ratings Aa2) at Libor plus 210 bps and $42,875,000 of class B-2-R floating-rate notes (expected ratings Aa2) at Libor plus 210 bps.
The CLO also sold $45 million of class C-R floating-rate notes (expected ratings A2) at Libor plus 260 bps, $61 million of class D-R floating-rate notes (expected ratings Baa3) at Libor plus 370 bps and $51.5 million of class E-R floating-rate notes (expected ratings Ba3) at Libor plus 735 bps.
Morgan Stanley & Co. LLC was the refinancing placement agent.
The refinanced CLO has a new one-year non-call period and three-year reinvestment period.
In the original $1,005,300,000 offering issued June 15, 2018, the CLO sold $650 million of class A notes at Libor plus 94 bps; $92 million of class B-1 notes at Libor plus 150 bps, $18 million of class B-2 notes at Libor plus 150 bps; $60 million of class C notes at Libor plus 180 bps; $60 million of class D notes at Libor plus 270 bps; $40 million of class E notes at Libor plus 550 bps and $85.3 million of subordinated notes.
Proceeds will be used to redeem the secured notes.
The refinancing deal includes $86.8 million of subordinated notes that will remain outstanding.
CBAM CLO Management has priced two new CLOs year to date.
The New York City-based portfolio company of private investment firm Eldridge Industries priced five CLOs in 2018.
| Issuer: | CBAM 2018-6, Ltd./CBAM 2018-6 LLC
|
| Amount: | $920 million refinancing
|
| Maturity: | Jan. 15, 2031
|
| Securities: | Fixed- and floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | CBAM CLO Management LLC
|
| Call feature: | One year
|
| Settlement date: | Dec. 6
|
|
|
| Class A-1-R notes
|
| Amount: | $610 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 127 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
| Kroll: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $30 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.832%
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
| Kroll: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | $79,625,000
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B-2-R notes
|
| Amount: | $42,875,000
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C-R notes
|
| Amount: | $45 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D-R notes
|
| Amount: | $61 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E-R notes
|
| Amount: | $51.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 735 bps
|
| Rating: | Moody’s: Ba3 expected
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
