By Cristal Cody
Tupelo, Miss., Oct. 6 – Sound Point Capital Management LP priced $811.9 million of notes due Oct. 20, 2030 in the new Sound Point CLO XVII, Ltd./Sound Point CLO XVII, Inc. transaction, according to market sources on Friday.
The CLO sold $260 million of class A-1A floating-rate notes at Libor plus 122 basis points; $260 million of class A-1B floating-rate notes at Libor plus 122 bps; $91 million of class A-2 floating-rate notes at Libor plus 160 bps; $40 million of class B floating-rate notes at Libor plus 195 bps; $53 million of class C floating-rate notes at Libor plus 300 bps; $32 million of class D floating-rate notes at Libor plus 650 bps and $75.9 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
Sound Point Capital will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $800 million of mostly senior secured leveraged loans.
The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
Sound Point Capital has priced three new CLOs and refinanced seven vintage CLOs year to date.
The New York-based asset management firm priced three new CLO deals in 2016.
| Issuer: | Sound Point CLO XVII, Ltd./Sound Point CLO XVII, Inc.
|
| Amount: | $811.9 million
|
| Maturity: | Oct. 20, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Two years
|
| Pricing date: | Sept. 28
|
| Settlement date: | Oct. 31
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1A notes
|
| Amount: | $260 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 122 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $260 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 122 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $91 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Ratings: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $40 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $53 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $32 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $75.9 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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