By Cristal Cody
Tupelo, Miss., Oct. 4 – Garrison Capital Inc. priced a $420 million middle-market collateralized loan obligation offering that was a refinancing, reset and renaming of a 2016 deal, according to a market source.
Garrison Funding 2018-2 Ltd./Garrison Funding 2018-2 LLC priced $50 million of class A-1R-R floating-rate notes at Libor plus 158 basis points and $170.4 million of class A-1T-R floating-rate notes at Libor plus 158 bps.
The CLO also sold $55.1 million of class A-2-R floating-rate notes and $36.5 million of class B-R floating-rate notes.
The deal includes the original $108 million equity tranche of subordinated notes
Natixis Securities America LLC was the placement agent.
The maturity on the notes was extended to Nov. 20, 2029 from Sept. 29, 2027.
The reset CLO has a two-year non-call period and a four-year reinvestment period.
In the original $300 million Garrison Funding 2016-2 Ltd. transaction issued Sept. 29, 2016, the CLO sold $25 million of class A-1R revolver notes at par with a coupon of Libor plus 220 bps and $88.15 million of class A-1T term notes at par with a coupon of Libor plus 220 bps.
The CLO sold $25 million of 3.41% class A-1F term notes at par and $20.7 million of class A-2 term notes at 99.73 with a coupon of Libor plus 315 bps.
Garrison Funding 2016-2 also had priced $21.45 million of class B term notes at 98.90 with a coupon of Libor plus 400 bps and $11.7 million of class C term notes at 98.66 with a coupon of Libor plus 600 bps.
Proceeds will be used to redeem the original notes.
Garrison Capital, an affiliate of Garrison Investment Group LP, is a New York-based business development company that mostly invests in loans to U.S. middle-market companies.
| Issuer: | Garrison Funding 2018-2 Ltd./Garrison Funding 2018-2 LLC
|
| Amount: | $420 million refinancing
|
| Maturity: | Nov. 20, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Middle-market CLO
|
| Refinancing agent: | Natixis Securities America LLC
|
| Manager: | Garrison Investment Group, LP
|
| Call feature: | Two years
|
| Announcement date: | Sept. 25
|
| Settlement date: | Oct. 15
|
|
|
| Class A-1R-R notes
|
| Amount: | $50 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 158 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1T-R notes
|
| Amount: | $170.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 158 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2-R notes
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| Amount: | $55.1 million
|
| Securities: | Floating-rate notes
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| Rating: | S&P: AA
|
|
|
| Class B-R notes
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| Amount: | $36.5 million
|
| Securities: | Floating-rate notes
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| Rating: | S&P: A
|
|
|
| Equity
|
| Amount: | $108 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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