By Marisa Wong
Los Angeles, Feb. 8 – Sixth Street CLO XXIV, Ltd. and Sixth Street CLO XXIV, LLC will issue a $407.5 million collateralized loan obligation, according to a presale report.
Sixth Street CLO XXIV Management LLC is the manager.
The notes will mature on April 23, 2037. They are non-callable until April 5, 2026.
The CLO will consist of $248 million of class A floating-rate notes (Aaa), $56 million of class B floating-rate notes, $24 million of class C floating-rate notes, $24 million of class D floating-rate notes, $15 million of class E floating-rate notes and $40.5 million of subordinated notes.
The CLO is backed by a $400 million portfolio of non-investment-grade broadly syndicated loans and other assets that the manager purchases from and trades in the primary and secondary markets.
Closing is expected to be on April 5.
BNP Paribas Securities Corp. is the underwriter.
U.S. Bank Trust Co., NA is the trustee.
Sixth Street is a global investment firm based in San Francisco.
| Issuer: | Sixth Street CLO XXIV, Ltd.
|
| Issue: | Floating-rate notes and subordinated notes
|
| Amount: | $407.5 million
|
| Maturity: | April 23, 2037
|
| Structure: | Cash flow CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | Sixth Street CLO XXIV Management, LLC
|
| Call feature: | April 5, 2026
|
| Pricing date: | Feb. 8
|
| Settlement date: | April 5
|
|
|
| Class A notes
|
| Amount: | $248 million
|
| Securities: | Floating-rate notes
|
| Coupon: | SOFR plus 152 bps
|
| Rating: | Moody's: Aaa
|
|
|
| Class B notes
|
| Amount: | $56 million
|
| Securities: | Floating-rate notes
|
| Coupon: | SOFR plus 200 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | SOFR plus 240 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | SOFR plus 350 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $15 million
|
| Securities: | Floating-rate notes
|
| Coupon: | SOFR plus 650 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $40.5 million
|
| Securities: | Subordinated notes
|
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