By Cristal Cody
Tupelo, Miss., Oct. 24 – Greywolf Capital Management LP sold $424.5 million of global secured notes in a refinancing and reset of a vintage 2013 collateralized loan obligation deal, according to a notice of executed second supplemental indenture.
Greywolf CLO II, Ltd./Greywolf CLO II, LLC priced $3.5 million of class X senior secured floating-rate notes at Libor plus 70 basis points; $248 million of class A-1-R senior secured floating-rate notes at Libor plus 123 bps; $46.5 million of class A-2-R senior secured floating-rate notes at Libor plus 170 bps; $33.3 million of class B-R senior secured deferrable floating-rate notes at Libor plus 215 bps; $21.8 million of class C-R senior secured deferrable floating-rate notes at Libor plus 305 bps; $18.4 million of class D-R secured deferrable floating-rate notes at Libor plus 635 bps and $53.5 million of class B subordinated notes.
J.P. Morgan Securities LLC was the refinancing placement agent.
Greywolf Capital Management will continue to manage the CLO.
The maturity on the notes is Oct. 15, 2029. The maturity on the refinanced notes was extended from the original April 15, 2025 maturity.
The reset CLO has a two-year non-call period and a four-year reinvestment period.
In the original deal issued on March 28, 2013, the CLO priced $250 million of class A-1 notes at Libor plus 115 bps; $44.1 million of class A-2 notes at Libor plus 193 bps; $34.5 million of class B notes at Libor plus 270 bps; $19.7 million of class C notes at Libor plus 383 bps; $17 million of class D notes at Libor plus 470 bps and two tranches of subordinated notes that included $10.1 million of class A subordinated notes and $37.5 million of class B subordinated notes.
Proceeds from the refinancing were used to redeem the original notes.
The refinanced CLO is secured predominantly by broadly syndicated senior secured corporate loans.
Greywolf has refinanced four CLOs year to date.
The investment management firm is based in Purchase, N.Y.
| Issuer: | Greywolf CLO II, Ltd./Greywolf CLO II, LLC
|
| Amount: | $424.5 million refinancing
|
| Maturity: | Oct. 15, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Greywolf Capital Management LP
|
| Call feature: | Two years
|
| Settlement date: | Oct. 16
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $3.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 70 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1-R notes
|
| Amount: | $248 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 123 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $46.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $33.3 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $21.8 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 305 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R notes
|
| Amount: | $18.4 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 635 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $53.5 million
|
| Securities: | Class B subordinated notes
|
| Ratings: | Non-rated
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