By Cristal Cody
Tupelo, Miss., May 3 – Palmer Square Capital Management LLC refinanced $322.1 million of notes due May 15, 2025 from a vintage 2013 collateralized loan obligation offering, according to a notice of optional redemption and notice of revised proposed supplemental indenture on Tuesday.
Palmer Square CLO 2013-1, Ltd./Palmer Square CLO 2013-1, LLC priced $212.8 million of class A-1-R senior secured floating-rate notes at Libor plus 97 basis points; $59.7 million of class A-2-R senior secured floating-rate notes at Libor plus 150 bps; $19.75 million of class B-R senior secured deferrable floating-rate notes at Libor plus 205 bps; $16.2 million of class C-R senior secured deferrable floating-rate notes at Libor plus 310 bps and $13.65 million of class D-R secured deferrable floating-rate notes at Libor plus 500 bps.
J.P. Morgan Securities LLC arranged the transaction.
Palmer Square Capital Management will continue to manage the CLO.
In the original transaction settled on May 17, 2013, Palmer Square CLO 2013-1 sold $362.35 million of notes in the offering. The CLO priced $212.8 million of class A-1 floating-rate notes at Libor plus 125 bps; $59.7 million of class A-2 floating-rate notes at Libor plus 200 bps; $19.75 million of class B deferrable floating-rate notes at Libor plus 285 bps; $16.2 million of class C deferrable floating-rate notes at Libor plus 405 bps; $13.65 million of class D deferrable floating-rate notes at Libor plus 520 bps; $8.65 million of class E deferrable floating-rate notes at Libor plus 650 bps and $31.6 million of subordinated notes.
Proceeds from the offering will be used to redeem the original class A-1, A-2, B, C and D notes on May 15.
Palmer Square Capital has refinanced two vintage 2013 CLOs year to date.
The Leawood, Kan.-based asset management firm priced two CLO deals in 2016.
| Issuer: | Palmer Square CLO 2013-1, Ltd./Palmer Square CLO 2013-1, LLC
|
| Amount: | $322.1 million refinancing
|
| Maturity: | May 15, 2025
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Palmer Square Capital Management LLC
|
| Record date: | April 30
|
| Settlement date: | May 15
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1-R notes
|
| Amount: | $212.8 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 97 bps
|
| Ratings: | Moody’s: Aaa expected
|
| S&P: AAA expected
|
|
|
| Class A-2-R notes
|
| Amount: | $59.7 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | S&P: AA expected
|
|
|
| Class B-R notes
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| Amount: | $19.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | S&P: A expected
|
|
|
| Class C-R notes
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| Amount: | $16.25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | S&P: BBB expected
|
|
|
| Class D-R notes
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| Amount: | $13.65 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | S&P: BB expected
|
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