By Cristal Cody
Tupelo, Miss., April 30 - Marathon Asset Management LP sold $490.25 million of notes due May 2025 in the Marathon CLO VI Ltd./Marathon CLO VI LLC deal, according to an informed source.
The CLO priced $288.5 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 153 basis points; $51.7 million of class A-2 senior secured floating-rate notes (/AA/) at Libor plus 205 bps; $45.8 million of class B senior secured deferrable floating-rate notes (/A/) at Libor plus 285 bps; $25.75 million of class C senior secured deferrable floating-rate notes (/BBB/) at Libor plus 350 bps; $22.7 million of class D secured deferrable floating-rate notes (/BB/) at Libor plus 505 bps; $7.3 million of class E secured deferrable floating-rate notes (/B/) at Libor plus 580 bps and $48.5 million of subordinated notes.
J.P. Morgan Securities LLC arranged the deal.
Marathon Asset Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured loans to corporate borrowers.
The CLO is non-callable until May 2016. The reinvestment period is set to end in May 2018.
Marathon Asset Management, a New York City-based global credit manager, was last in the primary market in 2013 when it priced the $614.25 million Marathon CLO V Ltd. deal.
Issuer: | Marathon CLO VI Ltd./Marathon CLO VI LLC
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Amount: | $490.25 million
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Maturity: | May 2025
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Securities: | Floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | J.P. Morgan Securities LLC
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Manager: | Marathon Asset Management LP
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Call feature: | May 2016
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Pricing date: | April 11
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|
Class A-1 notes
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Amount: | $288.5 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 153 bps
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Ratings: | Moody's: Aaa
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| Standard & Poor's: AAA
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|
Class A-2 notes
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Amount: | $51.7 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 205 bps
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Rating: | Standard & Poor's: AA
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|
Class B notes
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Amount: | $45.8 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 285 bps
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Rating: | Standard & Poor's: A
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|
Class C notes
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Amount: | $25.75 million
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Securities: | Senior secured deferrable floating-rate notes
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Coupon: | Libor plus 350 bps
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Rating: | Standard & Poor's: BBB
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Class D notes
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Amount: | $22.7 million
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Securities: | Secured deferrable floating-rate notes
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Coupon: | Libor plus 505 bps
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Rating: | Standard & Poor's: BB
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|
Class E notes
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Amount: | $7.3 million
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Securities: | Secured deferrable floating-rate notes
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Coupon: | Libor plus 580 bps
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Rating: | Standard & Poor's: B
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|
Equity tranche
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Amount: | $48.5 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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