By Cristal Cody
Tupelo, Miss., Aug. 30 – Gallatin Loan Management, LLC priced $436.5 million of notes due Jan. 21, 2028 in a new collateralized loan obligation transaction, according to a market source.
Gallatin CLO IX 2018-1 Ltd. sold $2 million of class X senior secured floating-rate notes at Libor plus 70 basis points, $280.5 million of class A senior secured floating-rate notes at Libor plus 105 bps, $34,725,000 of class B-1 senior secured floating-rate notes at Libor plus 175 bps, $4.9 million of class B-2 senior secured floating-rate notes at Libor plus 175 bps and $5 million of 4.77% class B-3 senior secured fixed-rate notes.
The CLO also priced $2.75 million of class C-1 deferrable mezzanine floating-rate notes at Libor plus 210 bps; $17.5 million of C-2 deferrable mezzanine floating-rate notes at Libor plus 210 bps; $1 million of 5.08% class C-3 deferrable mezzanine fixed-rate notes; $22.5 million of class D-1 deferrable mezzanine floating-rate notes at Libor plus 310 bps; $3 million of D-2 deferrable mezzanine floating-rate notes at Libor plus 310 bps; $19,125,000 of class E deferrable mezzanine floating-rate notes at Libor plus 547 bps; $8.5 million of class F deferrable mezzanine floating-rate notes at Libor plus 731 bps and $35 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
Gallatin will manage the CLO.
The CLO has a 1.4-year non-call period and a 1.4-year reinvestment period.
The issue is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Gallatin is a CLO management firm based in San Juan, Puerto Rico.
| Issuer: | Gallatin CLO IX 2018-1 Ltd.
|
| Amount: | $436.5 million
|
| Maturity: | Jan. 21, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | Gallatin Loan Management, LLC
|
| Call feature: | 1.4 years
|
| Pricing date: | Aug. 3
|
| Settlement date: | Aug. 30
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 70 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $280.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 105 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $34,725,000
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-2 notes
|
| Amount: | $3.1 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-3 notes
|
| Amount: | $5 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.77%
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-1 notes
|
| Amount: | $2.75 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-2 notes
|
| Amount: | $17.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-3 notes
|
| Amount: | $1 million
|
| Securities: | Deferrable mezzanine fixed-rate notes
|
| Coupon: | 5.03%
|
| Rating: | Moody’s: A2
|
|
|
| Class D-1 notes
|
| Amount: | $22.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-2 notes
|
| Amount: | $3 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $19,125,000
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 547 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
|
| Amount: | $8.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 731 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $35 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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