By Cristal Cody
Tupelo, Miss., Feb. 7 – Octagon Credit Investors, LLC priced $690,368,780 of notes due Oct. 20, 2026 in a refinancing of the Octagon Investment Partners 25, Ltd./Octagon Investment Partners 25, LLC transaction, according to a notice of partial redemption by refinancing and additional issuance on Tuesday.
The CLO sold $557,414,040 of class A-R senior secured floating-rate notes at Libor plus 80 basis points; $101,143,676 of class B-R senior secured floating-rate notes at Libor plus 120 bps; $9,657,853 of class C-N secured deferrable mezzanine floating-rate notes at Libor plus 155 bps; $4,952,745 of class D-N secured deferrable mezzanine floating-rate notes at Libor plus 230 bps; $2,476,372 of class E-1-N secured deferrable junior floating-rate notes at Libor plus 450 bps; $13,485,823 of class E-2-R secured deferrable junior floating-rate notes at Libor plus 450 bps; $1,238,186 of class F-N secured deferrable junior floating-rate notes at Libor plus 650 bps and $85 million of subordinated notes.
Citigroup Global Markets Inc. was the refinancing placement agent.
Octagon Credit Investors will continue to manage the CLO.
The CLO has a reinvestment period that ends on the payment date in April 2020.
In the original $820 million transaction issued on Oct. 29, 2015, the CLO sold $3 million of class X senior secured floating-rate notes at Libor plus 100 bps, $496 million of class A senior secured floating-rate notes at Libor plus 146 bps and $90 million of class B senior secured floating-rate notes at Libor plus 220 bps, all at par.
The CLO also priced $78 million of class C secured deferrable mezzanine floating-rate notes at Libor plus 325 bps at par; $40 million of class D secured deferrable mezzanine floating-rate notes at Libor plus 425 bps at par; $20 million of class E-1 secured deferrable junior floating-rate notes at Libor plus 700 bps at par; $12 million of class E-2 secured deferrable junior floating-rate notes at Libor plus 585 bps at 94.18; $10 million of class F secured deferrable junior floating-rate notes at Libor plus 695 bps at 87.91 and $71 million of subordinated notes.
Proceeds will be used to redeem the original notes.
Year to date, Octagon has priced one new CLO and refinanced two vintage CLOs.
In 2017, Octagon Credit Investors priced four new CLOs and refinanced notes from seven vintage CLOs.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners 25, Ltd./Octagon Investment Partners 25, LLC
|
| Amount: | $690,368,780 refinancing
|
| Maturity: | Oct. 20, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Octagon Credit Investors, LLC
|
| Notice date: | Feb. 6
|
| Settlement date: | Feb. 22
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-R notes
|
| Amount: | $557,414,040
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 80 bps
|
| Ratings: | Moody’s: Aaa expected
|
| S&P: AAA expected
|
|
|
| Class B-R notes
|
| Amount: | $101,143,676
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Rating: | Moody’s: Aa1 expected
|
|
|
| Class C-N notes
|
| Amount: | $9,657,853
|
| Securities: | Secured deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D-N notes
|
| Amount: | $4,952,745
|
| Securities: | Secured deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E-1-N notes
|
| Amount: | $2,476,372
|
| Securities: | Secured deferrable junior floating-rate notes
|
| Coupon: | Libor plus 450 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Class E-2-R notes
|
| Amount: | $13,485,823
|
| Securities: | Secured deferrable junior floating-rate notes
|
| Coupon: | Libor plus 450 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Class F-N notes
|
| Amount: | $1,238,186
|
| Securities: | Secured deferrable junior floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | Moody’s: B1 expected
|
|
|
| Equity
|
| Amount: | $85 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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