By Cristal Cody
Tupelo, Miss., June 11 – Palmer Square Capital Management LLC priced $666.9 million of Rule 144A and Regulation S global notes due May 21, 2029 in a second refinancing of a vintage 2015 transaction, according to a market source and a notice of revised proposed supplemental indenture on Monday.
Palmer Square CLO 2015-1 Ltd./Palmer Square CLO 2015-1, LLC sold $457 million of class A-1-R2 senior secured floating-rate notes at Libor plus 122 basis points, $84.2 million of class A-2-R2 senior secured floating-rate notes at Libor plus 165 bps, $56.5 million of class B-R2 senior secured deferrable floating-rate notes at Libor plus 225 bps, $36.1 million of class C-R2 senior secured deferrable floating-rate notes at Libor plus 315 bps and $33.1 million of class D-R2 secured deferrable floating-rate notes at Libor plus 625 bps.
J.P. Morgan Securities LLC was the refinancing placement agent.
Palmer Square Capital Management will continue to manage the CLO.
The non-call period will be extended to but excluding the payment date in May 2020. The CLO has a two-year reinvestment period.
The original CLO was issued May 21, 2015 and was first refinanced May 22, 2017.
In the original $435.8 million offering, the CLO priced $263.8 million of class A-1 senior secured floating-rate notes at Libor plus 150 bps; $53.45 million of class A-2 senior secured floating-rate notes at Libor plus 205 bps; $33.15 million of class B senior secured deferrable floating-rate notes at Libor plus 285 bps; $21.15 million of class C senior secured deferrable floating-rate notes at Libor plus 340 bps; $19.45 million of class D secured deferrable floating-rate notes at Libor plus 495 bps and $44.8 million of subordinated notes.
In the first refinancing, the CLO sold $457 million of class A-1-R notes at Libor plus 130 bps, $84.2 million of class A-2-R notes at Libor plus 185 bps, $56.5 million of class B-R notes at Libor plus 255 bps, $36.1 million of class C-R notes at Libor plus 350 bps and $33.1 million of class D-R notes at Libor plus 620 bps.
Proceeds will be used to redeem the outstanding notes on June 17.
The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Palmer Square Capital is an investment management firm based in Leawood, Kan.
| Issuer: | Palmer Square CLO 2015-1, Ltd./Palmer Square CLO 2015-1, LLC
|
| Amount: | $666.9 million refinancing
|
| Maturity: | May 21, 2029
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Palmer Square Capital Management LLC
|
| Call feature: | To but excluding the payment date in May 2020
|
| Record date: | May 17
|
| Settlement date: | June 17
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1-R2 notes
|
| Amount: | $457 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 122 bps
|
| Ratings: | Moody’s: Aaa expected
|
| S&P: AAA
|
|
|
| Class A-2-R2 notes
|
| Amount: | $84.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R-2 notes
|
| Amount: | $56.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R-2 notes
|
| Amount: | $36.1 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 315 bps
|
| Rating: | S&P: BBB
|
|
|
| Class D-R-2 notes
|
| Amount: | $33.1 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Rating: | S&P: BB-
|
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