THL Credit Advisors markets $504.5 million 12-year notes in THL Credit Wind River 2016-2 CLO

By Cristal Cody

Eureka Springs, Ark., Sept. 22 – THL Credit Advisors LLC plans to price $504.5 million of notes due Oct. 27, 2028 in a U.S. risk retention-compliant broadly syndicated collateralized loan obligation transaction, according to a market source.

The THL Credit Wind River 2016-2 CLO Ltd./THL Credit Wind River 2016-2 LLC deal includes $320 million of class A floating-rate notes (//AAA); $57.5 million of class B floating-rate notes; $30 million of class C floating-rate notes; $32.5 million of class D floating-rate notes; $10 million of class E-1 floating-rate notes; $10 million of class E-2 floating-rate notes and $44.5 million of subordinated notes.

Morgan Stanley & Co. LLC is the placement agent.

THL Credit Advisors will manage the CLO.

The CLO will have a two-year non-call period and a four-year reinvestment period.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

The offering is backed primarily by broadly syndicated first-lien senior secured corporate loans.

The transaction does not permit the purchase of bonds, notes or letters of credit, and the manager is expected to retain 5% of the outstanding amount of each class of notes to comply with the Volcker Rule and U.S. risk retention regulations. The deal is not expected to be compliant with European risk retention regulations.

THL Credit Advisors has priced one CLO deal year to date.

The CLO manager priced two CLO transactions in 2015.

Boston-based THL Credit Advisors is an alternative credit investment firm.

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