By Cristal Cody
Tupelo, Miss., Sept. 19 – Zais Group, LLC priced $564 million of notes due April 15, 2030 in a new collateralized loan obligation offering, according to market sources.
Zais CLO 7 Ltd./Zais CLO 7 LLC sold $352 million of class A floating-rate notes at Libor plus 129 basis points; $66 million of class B floating-rate notes at Libor plus 180 bps; $33 million of class C floating-rate notes at Libor plus 245 bps; $30.25 million of class D floating-rate notes at Libor plus 375 bps; $24.75 million of class E floating-rate notes at Libor plus 715 bps and $58 million of subordinated notes.
Goldman Sachs & Co. LLC was the placement agent.
Zais Leveraged Loan Master Manager, LLC will manage the CLO.
The notes have a two-year non-call period and a 4½-year reinvestment period.
The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Proceeds will be used to purchase a portfolio of about $550 million of primarily senior secured leveraged loans.
Zais Group has priced two CLOs year to date.
The Red Bank, N.J.-based structured credit asset management firm placed two CLO deals in 2016.
| Issuer: | Zais CLO 7 Ltd./Zais CLO 7 LLC
|
| Amount: | $564 million
|
| Maturity: | April 15, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co. LLC
|
| Manager: | Zais Leveraged Loan Master Manager, LLC
|
| Call feature: | Two years
|
| Pricing date: | Sept. 11
|
| Settlement date: | Oct. 19
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $352 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 129 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $66 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $33 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 245 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $30.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $24.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 715 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $58 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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