By Cristal Cody
Tupelo, Miss., Sept. 3 – Octagon Credit Investors, LLC priced $413 million of notes due Nov. 18, 2026 in a collateralized loan obligation deal, according to a market source.
Octagon Loan Funding, Ltd./Octagon Loan Funding, LLC sold $2.5 million of class X floating-rate notes at Libor plus 100 basis points, $202 million of class A-1 floating-rate notes at Libor plus 145 bps and $50 million of class A-2 floating-rate notes at Libor plus 115 bps, which step up to Libor plus 190 bps after November 2016.
The CLO also sold $36.7 million of class B-1 floating-rate notes at Libor plus 225 bps; $13 million of 4.465% class B-2 fixed-rate notes; $30.7 million of class C floating-rate notes at Libor plus 325 bps; $14.8 million of class D floating-rate notes at Libor plus 365 bps; $20.7 million of class E floating-rate notes at Libor plus 520 bps and $42.6 million of subordinated notes.
GreensLedge Capital Markets LLC arranged the offering.
Octagon Credit Investors will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The offering is backed primarily by first-lien senior secured loans.
Proceeds from the deal will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.
Octagon Credit Investors previously was in the primary market on July 10 with the $770.3 million Octagon Investment Partners XX, Ltd./Octagon Investment Partners XX, LLC transaction.
The firm has priced three CLOs and refinanced a vintage 2012 CLO over the year.
New York-based Octagon, an affiliate of CCMP Capital Advisors, LLC, brought four CLO transactions in 2013.
| Issuer: | Octagon Loan Funding, Ltd./Octagon Loan Funding, LLC
|
| Amount: | $413 million
|
| Maturity: | Nov. 18, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | GreensLedge Capital Markets LLC
|
| Manager: | Octagon Credit Investors, LLC
|
| Call feature: | 2016
|
| Pricing date: | Aug. 26
|
| Settlement date: | Sept. 17
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $2.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1 notes
|
| Amount: | $202 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $50 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 115 bps; steps up to Libor plus 190 bps after November 2016
|
| Rating: | Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $36.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $13 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 4.465%
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $30.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $14.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 365 bps
|
| Ratings: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $20.7 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 520 bps
|
| Ratings: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $42.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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