By Cristal Cody
Tupelo, Miss., June 2 – Octagon Credit Investors, LLC priced $660.96 million of notes due July 15, 2029 in a refinancing and reset of the vintage 2012 Octagon Investment Partners XIV, Ltd./Octagon Investment Partners XIV, LLC transaction, according to a market source and a notice of executed first supplemental indenture on Wednesday.
The CLO sold $6.4 million of class X-R senior secured floating-rate notes at Libor plus 88 basis points; $420.5 million of class A-1a-R senior secured floating-rate notes at Libor plus 117 bps; $46.2 million of class A-1b-R senior secured floating-rate notes at Libor plus 137.5 bps; $62.7 million of class A-2-R senior secured floating-rate notes at Libor plus 190 bps; $45.3 million of class B-R senior secured deferrable floating-rate notes at Libor plus 260 bps; $38 million of class C-R senior secured deferrable floating-rate notes at Libor plus 400 bps; $27.86 million of class D-R senior secured deferrable floating-rate notes at Libor plus 715 bps and $14 million of class E-R senior secured deferrable floating-rate note at Libor plus 835 bps.
Citigroup Global Markets Inc. arranged the offering.
Octagon Credit Investors will continue to manage the CLO.
The refinanced CLO has a new non-call period that ends in July 2019 and a reinvestment period that ends in July 2022.
The original transaction closed on Dec. 19, 2012.
Proceeds were used to redeem the original notes.
The CLO is backed primarily by broadly syndicated senior secured corporate loans.
Octagon Credit Investors has refinanced five vintage CLOs year to date.
The CLO manager priced three new CLOs and refinanced one CLO in 2016.
The New York-based credit investment firm is a subsidiary of Conning & Co.
| Issuer: | Octagon Investment Partners XIV, Ltd./Octagon Investment Partners XIV, LLC
|
| Amount: | $660.96 million refinancing
|
| Maturity: | July 15, 2029
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | July 2019
|
| Settlement date: | May 25
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X-R notes
|
| Amount: | $6.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 88 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1a-R notes
|
| Amount: | $420.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 117 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1b-R notes
|
| Amount: | $46.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 137.5 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2-R notes
|
| Amount: | $62.7 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-R notes
|
| Amount: | $45.3 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-R notes
|
| Amount: | $38 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-R notes
|
| Amount: | $27.86 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 715 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class E-R notes
|
| Amount: | $14 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 835 bps
|
| Rating: | Moody’s: B3
|
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