Chicago, Aug. 27 – Sound Point Capital Management, LP sold $505.6 million of notes due Oct. 25 2032 in the new Sound Point CLO XXIV, Ltd./Sound Point CLO XXIV, LLC transaction, according to a market source.
The CLO priced $305 million of class A-1 senior secured floating-rate notes at Libor plus 137 basis points; $15 million of class A-2 senior secured floating-rate notes at Libor plus 180 bps; $60 million of class B floating-rate notes at Libor plus 210 bps; $27.5 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 325 bps; $24.5 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 435 bps, $24 million of class E junior secured floating-rate notes at Libor plus 725 bps and $49.6 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the underwriter.
Sound Point Capital will manage the CLO.
The CLO has a two-year non-call period. The reinvestment period ends in October 2024.
The deal is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
Sound Point currently manages 23 CLOs, as of July 31, 2019.
The asset management firm is based in New York.
| Issuer: | Sound Point CLO XXIV Ltd./Sound Point CLO XXIV LLC
|
| Amount: | $505.6 million
|
| Maturity: | Oct. 25, 2032
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Underwriter: | Credit Suisse Securities (USA) LLC
|
| Manager: | Sound Point Capital Management, LP
|
| Pricing date: | Aug. 27
|
| Settlement date: | September
|
|
|
| Class A-1 notes
|
| Amount: | $305 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 137 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $15 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | Moody’s: Not rated
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $60 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $27.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $24.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 435 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $24 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 725 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Subordinated notes
|
| Amount: | $49.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Not rated
|
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