Chicago, Dec. 20 – Sixth Street CLO XVI Management LLC refinanced for $407.1 million the collateralized loan obligation issued by Sixth Street CLO XVI Ltd./Sixth Street CLO XVI LLC, according to a presale report.
The notes will mature on Jan. 20, 2037.
The CLO consists of $2 million of class X senior secured floating-rate notes at SOFR plus 130 basis points, $248 million of class A-1-R senior secured floating-rate notes at SOFR plus 179 bps, $8 million of class A-2-R senior secured floating-rate notes at SOFR plus 195 bps, $48 million of class B-R senior secured floating-rate notes at SOFR plus 245 bps, $24 million of class C-R senior secured deferrable floating-rate notes at SOFR plus 290 bps, $24 million of class D-R senior secured deferrable floating-rate notes at SOFR plus 465 bps, $14 million of class E-R senior secured deferrable floating-rate notes at SOFR plus 742 bps and $39.1 million of subordinated notes.
The original CLO had $235 million of class A-1a floating-rate notes at Libor plus 132 bps, $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 also originally had $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.
Sixth Street CLO XVI Management LLC will manage the collateral through the end of the reinvestment period on Jan. 20, 2028.
Collateral for the notes consists of broadly syndicated speculative-grade senior secured term loans.
The notes can be called starting Jan. 20, 2026.
BofA Securities Inc. was the placement agent.
Sixth Street is a global investment firm based in San Francisco.
| Issuer: | Sixth Street CLO XVI Ltd./Sixth Street CLO XVI LLC
|
| Issue: | Floating-rate notes and subordinated notes
|
| Amount: | $407.1 million
|
| Maturity: | Jan. 20, 2037
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Securities Inc.
|
| Manager: | Sixth Street CLO XVI Management LLC
|
| Call feature: | Jan. 20, 2026
|
| Pricing date: | Dec. 14
|
| Settlement date: | Dec. 21
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 130 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1-R notes
|
| Amount: | $248 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 179 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $8 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 195 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $48 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 245 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 290 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 465 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $14 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 742 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $39.1 million
|
| Securities: | Subordinated notes
|
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