By Cristal Cody
Tupelo, Miss., Dec. 3 – Morgan Stanley Investment Management Inc. sold $457.25 million of notes due Jan. 15, 2033 in the firm’s first broadly syndicated collateralized loan obligation transaction, according to market sources.
522 Funding CLO I Ltd./522 Funding CLO I LLC priced $279 million of class A-1 floating-rate notes at Libor plus 139 basis points and $13.5 million of class A-2 floating-rate notes at Libor plus 175 bps.
The CLO sold $32.5 million of class B-1 floating-rate notes at Libor plus 210 bps and $17 million of 3.71% class B-2 fixed-rate notes.
Lower down the capital structure, the CLO priced $27 million of class C deferrable floating-rate notes at Libor plus 295 bps, $24.75 million of class D deferrable floating-rate notes at Libor plus 420 bps, $18 million of class E deferrable floating-rate notes at Libor plus 734 bps and $45.5 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Morgan Stanley Investment Management will manage the CLO, which has a two-year non-call period and a five-year reinvestment period.
The notes are collateralized primarily by broadly syndicated senior secured loans.
Morgan Stanley Investment Management is a New York-based capital manager and subsidiary of financial products and services company Morgan Stanley.
| Issuer: | 522 Funding CLO I Ltd./522 Funding CLO I LLC
|
| Amount: | $457.25 million
|
| Maturity: | Jan. 15, 2033
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Morgan Stanley Investment Management Inc.
|
| Call feature: | Two years
|
| Settlement date: | Dec. 18
|
|
|
| Class A-1 notes
|
| Amount: | $279 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 139 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
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| Amount: | $13.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | S&P: Non-rated
|
|
|
| Class B-1 notes
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| Amount: | $32.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2 notes
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| Amount: | $17 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.71%
|
| Rating: | S&P: AA
|
|
|
| Class C notes
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| Amount: | $27 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 295 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
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| Amount: | $24.75 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 420 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
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| Amount: | $18 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 734 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $45.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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