By Cristal Cody
Eureka Springs, Ark., Oct. 5 – THL Credit Advisors LLC priced $655.5 million of notes due Oct. 27, 2028 in a U.S. risk retention-compliant broadly syndicated collateralized loan obligation transaction, according to a market source.
THL Credit Wind River 2016-2 CLO Ltd./THL Credit Wind River 2016-2 LLC sold $416 million of class A senior secured floating-rate notes at Libor plus 150 basis points and $74.75 million of class B senior secured floating-rate notes at Libor plus 190 bps.
The CLO priced $14.75 million of class C-1 mezzanine secured deferrable floating-rate notes at Libor plus 275 bps, $15.25 million of class C-2 mezzanine secured deferrable floating-rate notes at Libor plus 250 bps and $9 million of 4.04% class C-3 mezzanine secured deferrable fixed-rate notes.
THL Credit Wind River also sold $42.25 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 440 bps; $13 million of class E-1 junior secured deferrable floating-rate notes at Libor plus 760 bps; $13 million of class E-2 junior secured deferrable floating-rate notes at Libor plus 648 bps and $57.5 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
THL Credit Advisors will manage the CLO.
The CLO has a non-call period that ends Oct. 27, 2018 and a reinvestment period that ends Oct. 27, 2020.
Proceeds from the deal will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.
The offering is backed primarily by broadly syndicated first-lien senior secured corporate loans.
The transaction does not permit the purchase of bonds, notes or letters of credit, and the manager is expected to retain 5% of the outstanding amount of each class of notes to comply with Volcker Rule and U.S. risk retention regulations. The deal is not expected to be compliant with European risk retention regulations.
THL Credit Advisors has priced two new CLO deals and refinanced one vintage CLO transaction year to date.
The CLO manager priced two CLO transactions in 2015.
Boston-based THL Credit Advisors is an alternative credit investment firm.
| Issuer: | THL Credit Wind River 2016-2 CLO Ltd./THL Credit Wind River 2016-2 LLC
|
| Amount: | $655.5 million
|
| Maturity: | Oct. 27, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | THL Credit Advisors LLC
|
| Call feature: | Oct. 27, 2018
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 27
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $416 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
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| Amount: | $74.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-1 notes
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| Amount: | $14.75 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-2 notes
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| Amount: | $15.25 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-3 notes
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| Amount: | $9 million
|
| Securities: | Mezzanine secured deferrable fixed-rate notes
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| Coupon: | 4.04%
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $42.25 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 440 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-1 notes
|
| Amount: | $13 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 760 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class E-2 notes
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| Amount: | $13 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 648 bps
|
|
|
| Equity
|
| Amount: | $57.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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