By Cristal Cody
Tupelo, Miss., Nov. 2 – Octagon Credit Investors, LLC priced $405.2 million of notes due Oct. 15, 2033 in the new issue Octagon Investment Partners 50, Ltd./Octagon Investment Partners 50, LLC broadly syndicated collateralized loan obligation transaction, according to market sources.
Octagon 50 sold $156 million of class A-1 notes at Libor plus 130 basis points, $100 million of 1.659% class A-2 fixed-rate notes and $48 million of class B floating-rate notes at Libor plus 185 bps.
The CLO also priced $24 million of class C deferrable floating-rate notes at Libor plus 250 bps, $24 million of class D deferrable floating-rate notes at Libor plus 430 bps, $12 million of class E deferrable floating-rate notes at Libor plus 752 bps and $41.2 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
The CLO has a one-year non-call period and a three-year reinvestment period.
The offering is backed primarily by broadly syndicated first-lien senior secured loans.
Octagon Credit Investors is a New York-based credit investment firm that is majority owned by Conning & Co.
| Issuer: | Octagon Investment Partners 50, Ltd./Octagon Investment Partners 50, LLC
|
| Amount: | $405.2 million
|
| Maturity: | Oct. 15, 2033
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | One year
|
| Pricing date: | Oct. 6
|
| Settlement date: | Nov. 18
|
|
|
| Class A-1 notes
|
| Amount: | $156 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $100 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 1.659%
|
| Ratings: | S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Ratings: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $24 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 430 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $12 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 752 bps
|
| Ratings: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $41.2 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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