Chicago, April 1 – PPM Loan Management Co. LLC is refinancing for $418 million the collateralized loan obligation issued by PPM CLO 2 Ltd./PPM CLO 2 LLC, according to a presale report.
This is the second refinancing of the March 2019 transaction. The first refinancing was in April 2019.
The CLO will mature on April 16, 2037.
The refinancing consists of $4 million of class X senior secured floating-rate notes at SOFR plus 115 basis points, $221 million of class A-R senior secured floating-rate notes at SOFR plus 150 bps, $29 million of class A-LR senior secured floating-rate loans at SOFR plus 150 bps, $54 million of class B-R2 senior secured floating-rate notes at SOFR plus 225 bps, $24 million of class C-R2 senior secured deferrable floating-rate notes at SOFR plus 280 bps, $20 million of class D-R2A senior secured deferrable floating-rate notes at SOFR plus 466 bps, $8 million of class D-R2B senior secured deferrable floating-rate notes at SOFR plus 557 bps, $10 million of class E-R senior secured deferrable floating-rate notes at SOFR plus 801 bps and $48 million of subordinated notes.
PPM Loan Management Co. LLC will manage the collateral through the end of the reinvestment period on April 16, 2027.
Collateral for the CLO consists of broadly syndicated speculative-grade senior secured term loans.
The transaction can be called starting Oct. 16, 2025.
Citigroup Global Markets Inc. was the placement agent.
The CLO manager is based in Chicago.
| Issuer: | PPM CLO 2 Ltd./PPM CLO 2 LLC
|
| Issue: | Floating-rate notes, floating-rate loans and subordinated notes
|
| Amount: | $418 million
|
| Maturity: | April 16, 2037
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | PPM Loan Management Co. LLC
|
| Call feature: | Oct. 16, 2025
|
| Pricing date: | March 27
|
| Settlement date: | March 28
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 115 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-R notes
|
| Amount: | $221 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 150 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-LR loans
|
| Amount: | $29 million
|
| Securities: | Senior secured floating-rate loans
|
| Coupon: | SOFR plus 150 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R2 notes
|
| Amount: | $54 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 225 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R2 notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 280 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R2A notes
|
| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 466 bps
|
| Rating: | S&P: BBB+
|
|
|
| Class D-R2B notes
|
| Amount: | $8 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 557 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $10 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 801 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $48 million
|
| Securities: | Subordinated notes
|
|
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