By Cristal Cody
Tupelo, Miss., Oct. 16 – Sixth Street CLO XVI Management LLC priced a $403.1 million broadly syndicated collateralized loan obligation offering of notes due Oct. 20, 2032, according to market sources.
Sixth Street CLO XVI, Ltd./Sixth Street CLO XVI LLC sold $235 million of class A-1a floating-rate notes at Libor plus 132 basis points, $5 million of 1.66% class A-1b fixed-rate notes, $6 million of class A-2 floating-rate notes at Libor plus 165 bps and $57 million of class B floating-rate notes at Libor plus 185 bps.
The CLO priced $22.5 million of class C deferrable floating-rate notes at Libor plus 240 bps, $24.5 million of class D deferrable floating-rate notes at Libor plus 370 bps, $14 million of class E deferrable floating-rate notes at Libor plus 732 bps and $39.1 million of subordinated notes.
J.P. Morgan Securities LLC arranged the offering.
Sixth Street CLO XVI Management will manage the CLO.
The notes have a one-year non-call period and a three-year reinvestment period.
The CLO is collateralized primarily by broadly syndicated senior secured corporate loans.
Sixth Street is a global investment firm based in San Francisco.
| Issuer: | Sixth Street CLO XVI, Ltd./Sixth Street CLO XVI LLC
|
| Amount: | $403.1 million
|
| Maturity: | Oct. 20, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
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| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Sixth Street CLO XVI Management LLC
|
| Call feature: | One year
|
| Pricing date: | Oct. 5
|
| Settlement date: | Nov. 2
|
|
|
| Class A-1a notes
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| Amount: | $235 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 132 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class A-1b notes
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| Amount: | $5 million
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| Securities: | Fixed-rate notes
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| Coupon: | 1.66%
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| Ratings: | S&P: AAA
|
|
|
| Class A-2 notes
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| Amount: | $6 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 165 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class B notes
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| Amount: | $57 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 185 bps
|
| Ratings: | S&P: AA
|
|
|
| Class C notes
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| Amount: | $22.5 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 240 bps
|
| Ratings: | S&P: A
|
|
|
| Class D notes
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| Amount: | $24.5 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 370 bps
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| Ratings: | S&P: BBB-
|
|
|
| Class E notes
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| Amount: | $14 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 732 bps
|
| Ratings: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $39.1 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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