Chicago, Nov. 1 – 1988 Asset Management LLC issued $412.65 million of notes and loans in a collateralized loan obligation with 1988 CLO 3 Ltd./1988 CLO 3 LLC as co-issuers, according to a presale report.
The CLO will mature on Oct. 15, 2038.
The transaction consists of $190.5 million of class A-1 senior secured floating-rate notes at SOFR plus 200 basis points, $65.5 million of class A-1 senior secured floating-rate loans at SOFR plus 200 bps, $14 million of class A-2 senior secured floating-rate notes at SOFR plus 230 bps, $34 million of class B senior secured floating-rate notes at SOFR plus 270 bps, $24 million of class C senior secured deferrable floating-rate notes at SOFR plus 325 bps, $24 million of class D senior secured deferrable floating-rate notes at SOFR plus 520 bps, $12 million of class E senior secured deferrable floating-rate notes at SOFR plus 814 bps and $48.65 million of subordinated notes.
1988 Asset Management LLC will manage the collateral through the end of the reinvestment period on Oct. 15, 2028.
Collateral for the CLO consists of broadly syndicated speculative-grade senior secured term loans.
The non-call period ends Oct. 15, 2025.
J.P. Morgan Securities LLC was the placement agent.
1988 Asset Management is based in New York.
| Issuer: | 1988 CLO 3 Ltd./1988 CLO 3 LLC
|
| Issue: | Floating-rate notes, floating-rate loans and subordinated notes
|
| Amount: | $412.65 million
|
| Maturity: | Oct. 15, 2038
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | 1988 Asset Management LLC
|
| Call feature: | Oct. 15, 2025
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
|
|
| Class A-1 loans
|
| Amount: | $190.5 million
|
| Securities: | Senior secured floating-rate loans
|
| Coupon: | SOFR plus 200 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $65.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 200 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $14 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 230 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B notes
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| Amount: | $34 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 270 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 325 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
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| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 520 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
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| Amount: | $12 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 814 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $48.65 million
|
| Securities: | Subordinated notes
|
|
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