By Cristal Cody
Tupelo, Miss., Nov. 25 – American Capital CLO Management, LLC priced $410,796,000 of notes due Jan. 15, 2027 in the ACAS CLO 2014-2, Ltd./ACAS CLO 2014-2 LLC Rule 144A-eligible transaction, according to a company statement on Tuesday.
The CLO sold $226 million of class A-1 floating-rate notes at Libor plus 160 basis points; $36 million of 3.634% class A-2 fixed-rate notes; $30 million of class B-1 floating-rate notes at Libor plus 220 bps; $6 million of 4.551% class B-2 fixed-rate notes; $27.2 million of class C floating-rate notes at Libor plus 320 bps; $24 million of class D floating-rate notes at Libor plus 390 bps; $20.8 million of class E floating-rate notes at Libor plus 575 bps and $40,796,000 of subordinated notes.
Wells Fargo Securities LLC was the placement agent.
American Capital CLO Management will manage the CLO.
The company purchased $25 million of the subordinated notes, with third-party investors purchasing the remaining $16 million, according to the release.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is secured primarily by first-lien senior secured loans.
Proceeds from the transaction were invested primarily in broadly syndicated senior secured floating-rate loans purchased in the primary and secondary markets.
American Capital was previously in the primary market on June 6 with the $618.75 million ACAS CLO 2014-1, Ltd./ACAS CLO 2014-1 LLC deal.
The subsidiary of American Capital Asset Management, LLC, a portfolio company of Bethesda, Md.-based private equity firm American Capital, Ltd., brought two CLO transactions in 2013.
American Capital Asset Management now manages about $2.8 billion of broadly syndicated senior secured floating rate loans in six CLOs and American Capital Senior Floating, Ltd., a business development company.
| Issuer: | ACAS CLO 2014-2, Ltd./ACAS CLO 2014-2 LLC
|
| Amount: | $410,796,000
|
| Maturity: | Jan. 15, 2027
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities LLC
|
| Manager: | American Capital CLO Management, LLC
|
| Call feature: | 2016
|
| Settlement date: | Nov. 25
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $226 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $36 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.634%
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $30 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B-2 notes
|
| Amount: | $6 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.551%
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C notes
|
| Amount: | $27.2 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 320 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E notes
|
| Amount: | $20.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 575 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Equity tranche
|
| Amount: | $40,796,000
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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