By Cristal Cody
Tupelo, Miss., Oct. 8 – Diameter Capital Partners LP issued $429.5 million of notes due Oct. 25, 2038 in a collateralized debt obligation transaction, according to a market source.
Diameter Credit Funding III, Ltd. sold $198 million of 2.94% class A senior secured fixed-rate notes, $50 million of 3.69% class B senior secured fixed-rate notes, $20 million of 4.54% class C mezzanine secured deferrable fixed-rate notes and $20 million of 6.14% class D mezzanine secured deferrable fixed-rate notes.
The deal included up to $24 million of 6.84% class E junior secured deferrable fixed-rate notes to be issued after closing and $117.5 million of subordinated notes.
GreensLedge Capital Markets LLC was the placement agent.
Diameter Capital Partners will manage the CDO.
The offering is backed primarily by corporate bonds and loans.
Diameter Capital Partners is an investment firm based in New York.
| Issuer: | Diameter Credit Funding III, Ltd.
|
| Amount: | $429.5 million
|
| Maturity: | Oct. 25, 2038
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| Securities: | Fixed-rate and subordinated notes
|
| Structure: | Cash flow CDO
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| Placement agent: | GreensLedge Capital Markets LLC
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| Manager: | Diameter Capital Partners LP
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| Settlement date: | Oct. 7
|
|
|
| Class A notes
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| Amount: | $198 million
|
| Securities: | Senior secured fixed-rate notes
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| Coupon: | 2.94%
|
| Ratings: | Moody’s: Aaa
|
|
|
| Class B notes
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| Amount: | $50 million
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| Securities: | Senior secured fixed-rate notes
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| Coupon: | 3.69%
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| Ratings: | Moody’s: Aa3
|
|
|
| Class C notes
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| Amount: | $20 million
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| Securities: | Mezzanine secured deferrable fixed-rate notes
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| Coupon: | 4.54%
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| Ratings: | Moody’s: A3
|
|
|
| Class D notes
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| Amount: | $20 million
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| Securities: | Mezzanine secured deferrable fixed-rate notes
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| Coupon: | 6.14%
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| Ratings: | Moody’s: Baa3
|
|
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| Class E notes
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| Amount: | $24 million
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| Securities: | Mezzanine secured deferrable fixed-rate notes
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| Coupon: | 6.84%
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| Ratings: | Moody’s: Ba3
|
|
|
| Equity
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| Amount: | $117.5 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
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