Chicago, March 17 – Marathon Asset Management LP sold $407.2 million of new notes in its first collateralized loan offering of the year, with Marathon CLO 2021-16 Ltd./Marathon CLO 2021-16 LLC listed as issuers, according to a pre-sale report.
The portfolio, due April 15, 2034, includes $175 million of class A-1 senior secured floating-rate loans at Libor plus 120 basis points, $58 million of class A-1A senior secured floating-rate notes at Libor plus 120 bps, $0 of class A-1B senior secured deferrable floating-rate notes at Libor plus 120 bps (see below), $15 million of class A-1C 2.17% senior secured deferrable fixed-rate notes, $8 million of class A-1J senior secured deferrable floating-rate notes at Libor plus 155 bps and $48 million of class A-2 senior secured floating-rate notes at Libor plus 170 bps.
Lower in the debt stack are $24 million of class B senior secured deferrable floating-rate notes at Libor plus 225 bps, $24 million of class C senior secured deferrable floating-rate notes at Libor plus 350 bps and $14 million of class D senior secured deferrable floating-rate notes at Libor plus 741 bps.
There are additionally $41.2 million of subordinated notes.
Initially, the A-1B notes will be issued with no balance. At any time, the class A-1 loans can be converted into A-1B notes after the closing date. The spread on the two classes is the same.
The notes can be called after April 15, 2023.
Collateral for the notes will come primarily from senior secured loans, cash and eligible investments with most borrowers based in the United States.
Marathon Asset Management will manage the collateral until the reinvestment period ends on April 15, 2026.
Citigroup Global Markets Inc. is the initial purchaser.
Marathon Asset Management is a global credit manager based in New York City.
| Issuers: | Marathon CLO 2021-16 Ltd./Marathon CLO 2021-16 LLC
|
| Issue: | Floating-rate loan, floating-rate notes, fixed-rate notes and subordinated notes
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| Structure: | Cash flow CLO
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| Amount: | $407.2 million
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| Maturity: | April 15, 2034
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| Agent: | Citigroup Global Markets Inc.
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| Manager: | Marathon Asset Management LP
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| Call: | April 15, 2023
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| Pricing date: | March 15
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| Settlement date: | March 30
|
|
|
| Class A-1 loans
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| Amount: | $175 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 120 bps
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| Rating: | S&P: AAA
|
|
|
| Class A-1A notes
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| Amount: | $58 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 120 bps
|
| Rating: | S&P: AAA
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|
|
| Class A-1B notes
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| Amount: | $0
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 120 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1C notes
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| Amount: | $15 million
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| Securities: | Senior secured fixed-rate notes
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| Coupon: | 2.17%
|
| Rating: | S&P: AAA
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|
|
| Class A-1J notes
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| Amount: | $8 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 155 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
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| Amount: | $48 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 170 bps
|
| Rating: | S&P: AA
|
|
|
| Class B notes
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| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 225 bps
|
| Rating: | S&P: A
|
|
|
| Class C notes
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| Amount: | $24 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 350 bps
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| Rating: | S&P: BBB-
|
|
|
| Class D notes
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| Amount: | $14 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 741 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $41.2 million
|
| Securities: | Subordinated notes
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