By Cristal Cody
Tupelo, Miss. March 13 – Elmwood Asset Management LLC priced $506.7 million of notes due April 15, 2033 in a new broadly syndicated collateralized loan obligation transaction, according to market sources.
Elmwood CLO IV Ltd. sold $2 million of class X floating-rate notes at Libor plus 70 basis points, $320 million of class A floating-rate notes at Libor plus 124 bps and $60 million of class B floating-rate notes at Libor plus 170 bps.
The CLO also priced $30 million of class C floating-rate notes at Libor plus 205 bps, $30 million of class D floating-rate notes at Libor plus 315 bps, $17.5 million of class E floating-rate notes at Libor plus 660 bps and $47.2 million of subordinated notes.
BofA Securities, Inc. was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The transaction is backed primarily by broadly syndicated first-lien senior secured loans.
Elwood Asset Management is a New York-based hedge fund created in 2018.
| Issuer: | Elmwood CLO IV Ltd.
|
| Amount: | $506.7 million
|
| Maturity: | April 15, 2033
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Securities, Inc.
|
| Manager: | Elmwood Asset Management LLC
|
| Call feature: | Two years
|
| Settlement date: | March 26
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 70 bps
|
| Ratings: | Non-rated
|
|
|
| Class A notes
|
| Amount: | $320 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 124 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $60 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 315 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $17.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $47.2 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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