By Cristal Cody
Tupelo, Miss., May 10 – Sound Point Capital Management LP sold $608.15 million of notes due April 15, 2032 in the Sound Point CLO XXIII, Ltd. offering, according to a market source.
The CLO priced $351 million of class A-1 floating-rate notes at Libor plus 140 basis points, $33.5 million of class A-2A floating-rate notes at Libor plus 175 bps, $5.5 million of 4.09% class A-2B fixed-rate notes and $66 million of class B floating-rate notes at Libor plus 203 bps.
Sound Point CLO also priced $30 million of class C floating-rate notes at Libor plus 295 bps; $36 million of class D floating-rate notes at Libor plus 386 bps; $27 million of class E floating-rate notes at Libor plus 671 bps and $59.15 million of subordinated notes.
Barclays was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The deal is collateralized mostly by broadly syndicated first-lien senior secured corporate loans.
Sound Point Capital is an asset management firm based in New York.
| Issuer: | Sound Point CLO XXIII, Ltd.
|
| Amount: | $608.15 million
|
| Maturity: | April 15, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Barclays
|
| Manager: | Sound Point Capital Management LP
|
| Call feature: | Two years
|
| Pricing date: | April 26
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $351 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2A notes
|
| Amount: | $33.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2B notes
|
| Amount: | $5.5 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.09%
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $66 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 203 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 295 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D notes
|
| Amount: | $36 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 386 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E notes
|
| Amount: | $27 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 671 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Equity
|
| Amount: | $59.15 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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