By Cristal Cody
Eureka Springs, Ark., Nov. 4 – TPG Institutional Credit Partners, LLC priced $411 million of notes due Jan. 15, 2029 in a new collateralized loan obligation deal, a market source said.
TICP CLO VI 2016-2 Ltd. priced $248 million of class A senior secured floating-rate notes at Libor plus 155 basis points; $52 million of class B senior secured floating-rate notes at Libor plus 206 bps; $26 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 280 bps; $22 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 420 bps; $20 million of class E junior secured deferrable floating-rate notes at Libor plus 655 bps and $43 million of subordinated notes.
BofA Merrill Lynch arranged the offering.
TPG affiliate TICP CLO VI 2016-2 Management, LLC will manage the CLO, which is secured primarily by first-lien senior secured loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.
The Fort Worth, Texas-based private equity firm has priced two CLOs in 2016.
| Issuer: | TICP CLO VI 2016-2 Ltd.
|
| Amount: | $411 million
|
| Maturity: | Jan. 15, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | TICP CLO VI 2016-2 Management, LLC
|
| Call feature: | Two years
|
| Pricing date: | Oct. 26
|
| Settlement date: | Dec. 2
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $248 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $52 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 206 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $26 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 280 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $22 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 420 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $20 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 655 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $43 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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