By Cristal Cody
Tupelo, Miss., July 24 – Benefit Street Partners LLC priced $521,775,000 of replacement notes in a refinancing and reset of a 2013 broadly syndicated collateralized loan obligation, according to a market source and a notice of executed second supplemental indenture on Friday.
Benefit Street Partners CLO III Ltd./Benefit Street Partners CLO III LLC sold $5.2 million of class X senior secured floating-rate notes at Libor plus 85 basis points, $305.2 million of class A-1-R senior secured floating-rate notes at Libor plus 125 bps and $70 million of class A-2-R senior secured floating-rate notes at Libor plus 180 bps.
The CLO priced $35.3 million of class B-R senior secured deferrable floating-rate notes at Libor plus 260 bps, $29 million of class C-R senior secured deferrable floating-rate notes at Libor plus 390 bps, $23 million of class D-R secured deferrable floating-rate notes at Libor plus 660 bps and $54,075,000 of subordinated notes.
Citigroup Global Markets Inc. was the refinancing placement agent.
Benefit Street Partners will continue to manage the CLO.
The maturity on the refinanced notes was extended to July 20, 2029 from the original Jan. 20, 2026 maturity.
The refinanced CLO has a two-year non-call period and a four-year reinvestment period.
The original notes were issued on Dec. 5, 2013. The CLO sold $245.2 million of class A-1A notes at Libor plus 135 bps, $60 million of 3.539% class A-1B notes, $70 million of class A-2 notes at Libor plus 175 bps, $35.3 million of class B notes at Libor plus 250 bps, $29 million of class C notes at Libor plus 325 bps and $23 million of class D notes at Libor plus 450 bps.
Proceeds were used to redeem the original notes.
The CLO is collateralized primarily by broadly syndicated senior secured corporate loans.
Benefit Street Partners has priced one new CLO and refinanced three vintage CLOs year to date.
The CLO manager priced one new CLO and refinanced one vintage CLO transaction in 2016.
The credit investment arm of Providence Equity Partners LLC is based in New York City.
| Issuer: | Benefit Street Partners CLO III, Ltd./Benefit Street Partners CLO III LLC
|
| Amount: | $521,775,000 refinancing
|
| Maturity: | July 20, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Benefit Street Partners LLC
|
| Call feature: | Two years
|
| Settlement date: | July 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $5.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 85 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1-R notes
|
| Amount: | $305.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $70 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $35.3 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $29 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R notes
|
| Amount: | $23 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $54,075,000
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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