By Cristal Cody
Tupelo, Miss., June 30 – Palmer Square Capital Management LLC priced $557.6 million of notes in a refinancing and reset of a 2015 collateralized loan obligation offering, according to a market source and a notice of revised proposed supplemental indenture and proposed amendment No. 1 to collateral management agreement on Thursday.
Palmer Square CLO 2015-2, Ltd./Palmer Square CLO 2015-2, LLC priced $330 million of class A-1A-R senior secured floating-rate notes at Libor plus 127 basis points; $20.5 million of class A-1B-R senior secured floating-rate notes at Libor plus 135 bps; $68.9 million of class A-2-R senior secured floating-rate notes at Libor plus 180 bps; $31.5 million of class B-R senior secured deferrable floating-rate notes at Libor plus 240 bps; $33 million of class C-R senior secured deferrable floating-rate notes at Libor plus 370 bps; $19.25 million of class D-R secured deferrable floating-rate notes at Libor plus 650 bps; $8.25 million of class E-R secured deferrable floating-rate notes at Libor plus 770 bps and $46.2 million of subordinated notes.
Citigroup Global Markets Inc. arranged the transaction.
Palmer Square Capital Management will manage the CLO.
The maturity on the refinanced notes was extended to July 20, 2030 from the original July 20, 2027 maturity.
The reset CLO has a two-year non-call period and a five-year reinvestment period.
In the original $408.15 million transaction settled on July 25, 2015, the CLO priced $247.8 million of class A-1A senior secured floating-rate notes at Libor plus 150 bps; $5 million of class A-1B senior secured fixed-rate notes at 3.338%; $52.1 million of class A-2 senior secured floating-rate notes at Libor plus 223 bps; $25.6 million of class B senior secured deferrable floating-rate notes at Libor plus 310 bps; $20.5 million of class C senior secured deferrable floating-rate notes at Libor plus 365 bps; $15.85 million of class D secured deferrable floating-rate notes at Libor plus 545 bps and $34 million of subordinated notes.
Proceeds from the offering will be used to redeem the original notes on July 20.
Palmer Square Capital has refinanced three vintage CLOs year to date.
The Leawood, Kan.-based asset management firm priced two new CLO deals in 2016.
| Issuer: | Palmer Square CLO 2015-2, Ltd./Palmer Square CLO 2015-2, LLC
|
| Amount: | $557.6 million refinancing
|
| Maturity: | July 20, 2030
|
| Securities: | Global floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | Palmer Square Capital Management LLC
|
| Call feature: | Non-call period ends July 20, 2019
|
| Record date: | June 21
|
| Settlement date: | July 20
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1A-R notes
|
| Amount: | $330 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 127 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class A-1B-R notes
|
| Amount: | $20.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Ratings: | Fitch: AAA expected
|
|
|
| Class A-2-R notes
|
| Amount: | $68.9 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | S&P: AA
|
|
|
| Class B-R notes
|
| Amount: | $31.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Ratings: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $33 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Ratings: | S&P: BBB
|
|
|
| Class D-R notes
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| Amount: | $19.25 million
|
| Securities: | Secured deferrable floating-rate notes
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| Coupon: | Libor plus 650 bps
|
| Ratings: | S&P: BB
|
|
|
| Class E-R notes
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| Amount: | $8.25 million
|
| Securities: | Secured deferrable floating-rate notes
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| Coupon: | Libor plus 770 bps
|
| Ratings: | S&P: B
|
|
|
| Equity
|
| Amount: | $46.2 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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