By Cristal Cody
Tupelo, Miss., Sept. 10 – Regiment Capital Management, LLC brought $407.32 million of notes due Oct. 15, 2026 in a collateralized loan obligation deal, according to a market source.
Cavalry CLO IV, Ltd./Cavalry CLO IV, LLC sold $204 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 basis points and $50 million of class A senior secured loans (Aaa/AAA/) at Libor plus 150 bps.
The CLO priced $30 million of class B-1 senior secured floating-rate notes (/AA/) at Libor plus 240 bps; $18 million of 2.3% class B-2 senior secured fixed-rate notes (/AA/); $18 million of class C-1 deferrable floating-rate notes (/A/) at Libor plus 310 bps; $10 million of 3.25% class C-2 deferrable fixed-rate notes (/A/); $21 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 375 bps; $18 million of class E deferrable floating-rate notes (/BB/) at Libor plus 545 bps and $38.32 million of subordinated notes.
Wells Fargo Securities LLC was the placement agent.
Regiment Capital Management will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Regiment Capital Management, a Boston-based asset management firm, priced two CLO transactions in 2013.
| Issuer: | Cavalry CLO IV, Ltd./Cavalry CLO IV, LLC
|
| Amount: | $407.32 million
|
| Maturity: | Oct. 15, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes and floating-rate loans
|
| Structure: | Cash flow CLO
|
| Placement agent: Wells Fargo Securities LLC
|
| Manager: | Regiment Capital Management, LLC
|
| Call feature: | 2016
|
| Pricing date: | Aug. 19
|
| Settlement date: | Sept. 15
|
|
|
| Class A notes
|
| Amount: | $204 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A loans
|
| Amount: | $50 million
|
| Securities: | Senior secured loans
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $30 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B-2 notes
|
| Amount: | $18 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 2.3%
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C-1 notes
|
| Amount: | $18 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C-2 notes
|
| Amount: | $10 million
|
| Securities: | Deferrable fixed-rate notes
|
| Coupon: | 3.25%
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $21 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $18 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 545 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Equity tranche
|
| Amount: | $38.32 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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