By Cristal Cody
Tupelo, Miss., Oct. 11 - Ivy Hill Asset Management, LP priced $359.75 million of notes due Oct. 20, 2025 in its first collateralized loan obligation transaction since 2011, according to an informed source.
Ivy Hill Middle Market Credit Fund VII, Ltd. sold $185.25 million of class A senior floating-rate notes (Aaa) at Libor plus 165 basis points; $56 million of class B senior floating-rate notes (Aa2) at Libor plus 230 bps; $22.25 million of class C deferrable mezzanine floating-rate notes (A2) at Libor plus 345 bps; $17.5 million of class D deferrable mezzanine floating-rate notes (Baa2) at Libor plus 425 bps; $28 million of class E deferrable mezzanine floating-rate notes (Ba2) at Libor plus 565 bps and $50.75 million of subordinated notes.
Deutsche Bank Securities, Inc. was the underwriter.
The notes have a two-year non-call period and a four-year reinvestment period.
The CLO is backed by first-lien senior secured small- and medium-sized enterprise and broadly syndicated loans.
Ivy Hill Asset Management, a subsidiary of Ares Capital Corp., will manage the CLO.
The firm last brought a CLO in December 2011 when it priced $315 million in the Ivy Hill Middle Market Credit Fund III, Ltd. deal.
| Issuer: | Ivy Hill Middle Market Credit Fund VII, Ltd.
|
| Amount: | $359.75 million
|
| Maturity: | Oct. 20, 2025
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash-flow CLO
|
| Placement agent: | Deutsche Bank Securities, Inc.
|
| Manager: | Ivy Hill Asset Management, LP
|
| Call feature: | Oct. 20, 2015
|
| Settlement date: | Oct. 23
|
|
|
| Class A notes
|
| Amount: | $185.25 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Moody's: Aaa
|
|
|
| Class B notes
|
| Amount: | $56 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | Moody's: Aa2
|
|
|
| Class C notes
|
| Amount: | $22.25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 345 bps
|
| Rating: | Moody's: A2
|
|
|
| Class D notes
|
| Amount: | $17.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Rating: | Moody's: Baa2
|
|
|
| Class E notes
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| Amount: | $28 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 565 bps
|
| Rating: | Moody's: Ba2
|
|
|
| Equity tranche
|
| Amount: | $50.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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