Chicago, Sept. 26 – RBC Global Asset Management (U.S.) Inc. issued $398.25 million of notes and loans in a collateralized loan obligation being issued by BBAM US CLO III Ltd., according to a presale report.
The CLO will mature on Oct. 15, 2038.
The transaction consists of $250 million of class A-1L senior secured floating-rate loans at SOFR plus 210 basis points, $0 million of class A-1L senior secured floating-rate notes at SOFR plus 210 bps, $50 million of class A-2 senior secured floating-rate notes at SOFR plus 280 bps, $28 million of class B senior secured deferrable floating-rate notes at SOFR plus 320 bps, $19 million of class C-1 senior secured deferrable floating-rate notes at SOFR plus 480 bps, $4.6 million of class C-2 senior secured deferrable floating-rate notes at SOFR plus 735 bps, $12 million of class D senior secured deferrable floating-rate notes at SOFR plus 860 bps and $34.65 million of subordinated notes.
RBC Global Asset Management (U.S.) Inc. will manage the collateral through the end of the reinvestment period on Oct. 15, 2028.
Collateral for the notes and loans consists of broadly syndicated speculative-grade senior secured term loans.
The CLO can be called starting Sept. 26, 2025.
RBC Capital Markets LLC was the placement agent.
The investment adviser is based in Minneapolis.
| Issuer: | BBAM US CLO III Ltd.
|
| Issue: | Floating-rate notes and subordinated notes
|
| Amount: | $398.25 million
|
| Maturity: | Oct. 15, 2038
|
| Structure: | Cash flow CLO
|
| Placement agent: | RBC Capital Markets LLC
|
| Manager: | RBC Global Asset Management (U.S.) Inc.
|
| Call feature: | Sept. 26, 2025
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 26
|
|
|
| Class A-1L loans
|
| Amount: | $250 million
|
| Securities: | Senior secured floating-rate loans
|
| Coupon: | SOFR plus 210 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1L notes
|
| Amount: | $0 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 210 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $50 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 280 bps
|
| Rating: | S&P: AA
|
|
|
| Class B notes
|
| Amount: | $28 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 320 bps
|
| Rating: | S&P: A+
|
|
|
| Class C-1 notes
|
| Amount: | $19 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 480 bps
|
| Rating: | S&P: BBB
|
|
|
| Class C-2 notes
|
| Amount: | $4.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 735 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D notes
|
| Amount: | $12 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 860 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $34.65 million
|
| Securities: | Subordinated notes
|
|
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