Chicago, April 3 – 1988 Asset Management LLC sold $413 million in a collateralized loan obligation being issued by 1988 CLO 2 Ltd./1988 CLO 2 LLC, according to a presale report.
The notes will mature on April 15, 2038.
The CLO consists of $181 million of class A senior secured floating-rate notes at SOFR plus 232 basis points, $75 million of class A senior secured floating-rate loans at SOFR plus 232 bps, $48 million of class B senior secured floating-rate notes at SOFR plus 300 bps, $24 million of class C senior secured deferrable floating-rate notes at SOFR plus 370 bps, $24 million of class D senior secured deferrable floating-rate notes at SOFR plus 640 bps, $12 million of class E senior secured deferrable floating-rate notes at SOFR plus 827 bps and $49 million of subordinated notes.
1988 Asset Management LLC will manage the collateral through the end of the reinvestment period on April 15, 2028.
Collateral for the notes consists of broadly syndicated speculative-grade senior secured term loans.
The notes can be called starting March 23, 2025.
Barclays was the placement agent.
1988 Asset Management is based in New York.
| Issuer: | 1988 CLO 2 Ltd./1988 CLO 2 LLC
|
| Issue: | Floating-rate notes and subordinated notes
|
| Amount: | $413 million
|
| Maturity: | April 15, 2038
|
| Structure: | Cash flow CLO
|
| Placement agent: | Barclays
|
| Manager: | 1988 Asset Management LLC
|
| Call feature: | March 23, 2025
|
| Settlement date: | March 23
|
|
|
| Class A notes
|
| Amount: | $181 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 232 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A loans
|
| Amount: | $75 million
|
| Securities: | Senior secured floating-rate loans
|
| Coupon: | SOFR plus 232 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $48 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 300 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 370 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 640 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $12 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 827 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $49 million
|
| Securities: | Subordinated notes
|
|
|
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