By Cristal Cody
Tupelo, Miss., Nov. 2 – Palmer Square Capital Management LLC priced $398.85 million of notes due Nov. 25, 2028 in a new broadly syndicated collateralized loan obligation transaction, according to market sources.
Palmer Square CLO 2020-4 Ltd./Palmer Square CLO 2020-4, LLC sold $264 million of class A-1 floating-rate notes at a discount margin of Libor plus 100 basis points, $48 million of class A-2 floating-rate notes at Libor plus 160 bps and $24 million of class B floating-rate notes at Libor plus 230 bps.
Palmer Square also priced $18 million of class C floating-rate notes at a discount margin of Libor plus 360 bps, $16 million of class D floating-rate notes at Libor plus 715 bps and $4 million of class E floating-rate notes at Libor plus 900 bps.
The deal includes $24.85 million of subordinated notes.
Citigroup Global Markets Inc. was the placement agent.
The CLO features a one-year non-call period and no reinvestment period.
The notes are backed primarily by broadly syndicated first-lien senior secured loans.
The manager has priced four new broadly syndicated CLOs and one vintage refinancing transaction year to date.
Palmer Square Capital is an investment management firm based in Leawood, Kan.
| Issuer: | Palmer Square CLO 2020-4 Ltd./Palmer Square CLO 2020-4, LLC
|
| Amount: | $398.85 million
|
| Maturity: | Nov. 25, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Palmer Square Capital Management LLC
|
| Call feature: | One year
|
| Pricing date: | Sept. 21
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $264 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 100 bps
|
| Ratings: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 160 bps
|
| Ratings: | Fitch: AA
|
|
|
| Class B notes
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| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 230 bps
|
| Ratings: | Fitch: A
|
|
|
| Class C notes
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| Amount: | $18 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 360 bps
|
| Ratings: | Fitch: BBB
|
|
|
| Class D notes
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| Amount: | $16 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 715 bps
|
| Ratings: | Fitch: BB
|
|
|
| Class E notes
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| Amount: | $4 million
|
| Securities: | Floating-rate notes
|
| Discount margin: | Libor plus 900 bps
|
| Ratings: | Fitch: B+
|
|
|
| Equity
|
| Amount: | $24.85 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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