Chicago, Oct. 3 – Elmwood Asset Management LLC is refinancing for $304 million the collateralized loan obligation issued by Elmwood CLO 21 Ltd./Elmwood CLO 21 LLC , according to a presale report.
The notes will now mature on Oct. 20, 2036.
As an overview, the issuer was able to achieve lower spreads on the refinance notes. Additionally, instead of a mixed of fixed-coupon and floating spreads, now all of the debt will be floating.
The CLO will now consist of $189 million of class A-R senior secured floating-rate notes at SOFR plus 165 basis points, $39 million of class B-R senior secured floating-rate notes at SOFR plus 220 bps, $18 million of class C-R senior secured deferrable floating-rate notes at SOFR plus 270 bps, $18 million of class D-R senior secured deferrable floating-rate notes at SOFR plus 400 bps, $10.5 million of class E-R senior secured deferrable floating-rate notes at SOFR plus 650 bps, $4.5 million of class F-R senior secured deferrable floating-rate notes at SOFR plus 775 bps and $25 million of subordinated notes.
Elmwood Asset Management LLC will manage the collateral through the end of the extended reinvestment period on Oct. 20, 2028.
Collateral for the notes consists of broadly syndicated speculative-grade senior secured term loans.
The notes can be called starting Oct. 20, 2025, a two-year extension.
Morgan Stanley & Co. LLC was the placement agent.
The original CLO had $180 million of class A-1 senior secured floating-rate notes at SOFR plus 225 bps, $10 million of class A-2 senior secured floating-rate notes at SOFR plus 295 bps, $18 million of class B-1 senior secured floating-rate notes at SOFR plus 305 bps, $20 million of class B-2 7.03% senior secured fixed-rate notes, $16.5 million of class C senior secured deferrable floating-rate notes at SOFR plus 385 bps, $15.75 million of class D senior secured deferrable floating-rate notes at SOFR plus 565 bps, $10.5 million of class E senior secured deferrable floating-rate notes at SOFR plus 860 bps, $4.5 million of class F senior secured deferrable floating-rate notes at SOFR plus 1,015 bps and $25 million of subordinated notes.
The hedge fund is based in New York.
| Issuer: | Elmwood CLO 21 Ltd./Elmwood CLO 21 LLC
|
| Issue: | Floating-rate notes and subordinated notes
|
| Amount: | $304 million
|
| Maturity: | Oct. 20, 2036
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Elmwood Asset Management LLC
|
| Call feature: | Oct. 20, 2025
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 20
|
|
|
| Class A-R notes
|
| Amount: | $189 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 165 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $39 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 220 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $18 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 270 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $18 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 400 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $10.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 650 bps
|
| Rating: | S&P: BB-
|
|
|
| Class F-R notes
|
| Amount: | $4.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 775 bps
|
| Rating: | S&P: B-
|
|
|
| Subordinated notes
|
| Amount: | $25 million
|
| Securities: | Subordinated notes
|
|
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