By Cristal Cody
Tupelo, Miss., Feb. 2 – Carlyle Investment Management LLC subsidiary Carlyle CLO Management LLC refinanced $386 million of notes in a reset of the Carlyle Global Market Strategies CLO 2013-4 Ltd./Carlyle Global Market Strategies CLO 2013-4 LLC transaction, according to a notice of proposed supplemental indenture, amendment to income note paying agency agreement and refinancing redemption on Wednesday.
The CLO sold $234 million of class A-1-RR senior secured floating-rate notes at Libor plus 100 basis points; $16.5 million of class A-2-RR senior secured floating-rate notes at Libor plus 115 bps; $56.5 million of class B-RR senior secured floating-rate notes at Libor plus 142 bps; $22.5 million of class C-RR senior secured deferrable floating-rate notes at Libor plus 175 bps; $24 million of class D-RR senior secured deferrable floating-rate notes at Libor plus 265 bps; $14.5 million of class E-RR senior secured deferrable floating-rate notes at Libor plus 520 bps; and $18 million of subordinated notes.
Citigroup Global Markets Inc. is the refinancing placement agent.
The maturity on the refinanced notes was extended to January 2031 from the original Oct. 15, 2025 maturity.
The reset CLO will have an extended two-year non-call period and a five-year reinvestment period.
The original $415.21 million transaction was issued on Nov. 7, 2013, and the CLO was partially refinanced on July 15, 2016.
In the new issue, the CLO priced $1.2 million of class X senior secured floating-rate notes at Libor plus 90 bps; $122 million of class A-1 senior secured floating-rate notes at Libor plus 147 bps; and $130 million of class A-2 senior secured floating-rate notes at Libor plus 110 bps for 18 months, followed by a 12-month step-up to Libor plus 160 bps and a final step up to Libor plus 190 bps.
The CLO also sold $24 million of class B-1 senior secured floating-rate notes at Libor plus 170 bps; $20 million of 3.973% class B-2 senior secured fixed-rate notes; $31.75 million of class C senior secured deferrable floating-rate notes at Libor plus 280 bps; $21.75 million of class D senior secured deferrable floating-rate notes at Libor plus 320 bps; $18.5 million of class E senior secured deferrable floating-rate notes at Libor plus 450 bps; $8.5 million of class F senior secured deferrable floating-rate notes at Libor plus 520 bps; and $37.51 million of subordinated notes.
In the first refinancing, the CLO priced $130 million of class A-2-R senior secured notes at Libor plus 152 bps and $20 million of class B-2 senior secured notes with a floating-rate spread at Libor plus 210 bps.
Proceeds from the deal will be used to redeem the refinanced notes. The redemption record date for global securities is Feb. 28, and the redemption record date for certificated securities is Feb. 14.
Carlyle priced two new U.S. CLOs and refinanced five vintage U.S. CLOs in 2017.
The asset management firm and affiliate of Washington, D.C.-based Carlyle Group priced four new U.S. CLOs and refinanced five vintage CLOs in 2016.
| Issuer: | Carlyle Global Market Strategies CLO 2013-4 Ltd./Carlyle Global Market Strategies CLO 2013-4 LLC
|
| Amount: | $386 million refinancing
|
| Maturity: | January 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Carlyle CLO Management LLC
|
| Call feature: | January 2020
|
| Notice date: | Jan. 31
|
| Settlement date: | March 1
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-RR notes
|
| Amount: | $234 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa expected
|
| S&P: AAA expected
|
|
|
| Class A-2-RR notes
|
| Amount: | $16.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 115 bps
|
| Ratings: | Moody’s: Aaa expected
|
|
|
| Class B-RR notes
|
| Amount: | $56.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 142 bps
|
| Ratings: | S&P: AA expected
|
|
|
| Class C-RR notes
|
| Amount: | $22.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | S&P: A expected
|
|
|
| Class D-RR notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Ratings: | S&P: BBB- expected
|
|
|
| Class E-RR notes
|
| Amount: | $14.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 520 bps
|
| Ratings: | S&P: BB- expected
|
|
|
| Subordinated notes
|
| Amount: | $18 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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