By Cristal Cody
Tupelo, Miss., March 13 – Octagon Credit Investors, LLC priced $501.85 million of notes due April 15, 2031 in a new collateralized loan obligation transaction, according to a market source.
Octagon Investment Partners 41, Ltd./Octagon Investment Partners 41, LLC sold $300 million of class A-1 senior secured floating-rate notes Libor plus 133 basis points, $25 million of class A-2 senior secured floating-rate notes at Libor plus 165 bps and $46.4 million of class B senior secured floating-rate notes at Libor plus 185 bps.
The CLO also priced $25.6 million of class C secured deferrable floating-rate notes at Libor plus 260 bps; $31.6 million of class D secured deferrable floating-rate notes at Libor plus 365 bps; $29.5 million of class E secured deferrable floating-rate notes at Libor plus 690 bps and $43.75 million of subordinated notes.
J.P. Morgan Securities, LLC was the placement agent. Octagon Credit Investors will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The transaction is backed primarily by first-lien senior secured corporate loans.
The affiliate of CCMP Capital Advisors, LLC is based in New York.
Issuer: | Octagon Investment Partners 41, Ltd./Octagon Investment Partners 41, LLC
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Amount: | $501.85 million
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Maturity: | April 15, 2031
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Securities: | Floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | J.P. Morgan Securities, LLC
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Manager: | Octagon Credit Investors, LLC
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Call feature: | Two years
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Pricing date: | March 8
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Settlement date: | April 16
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Distribution: | Rule 144A and Regulation S
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|
Class A-1 notes
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Amount: | $300 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 133 bps
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Ratings: | Moody’s: Aaa
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| Fitch: AAA
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Class A-2 notes
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Amount: | $25 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 165 bps
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Ratings: | Moody’s: Non-rated
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| Fitch: AAA
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Class B notes
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Amount: | $46.4 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 185 bps
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Rating: | Moody’s: Aa2
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|
Class C notes
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Amount: | $25.6 million
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Securities: | Secured deferrable floating-rate notes
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Coupon: | Libor plus 260 bps
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Rating: | Moody’s: A2
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Class D notes
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Amount: | $31.6 million
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Securities: | Secured deferrable floating-rate notes
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Coupon: | Libor plus 365 bps
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Rating: | Moody’s: Baa3
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Class E notes
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Amount: | $29.5 million
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Securities: | Secured deferrable floating-rate notes
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Coupon: | Libor plus 690 bps
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Rating: | Moody’s: Ba3
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|
Equity
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Amount: | $43.75 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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