By Cristal Cody
Tupelo, Miss., Sept. 10 – Zais Group, LLC priced $333.75 million of notes due July 27, 2026 in the Zais CLO 2, Ltd./Zais CLO 2, LLC offering, according to a market source on Wednesday.
The CLO sold $106.4 million of class A-1A floating-rate notes at Libor plus 150 basis points; $50 million of 3.57% class A-1B fixed-rate notes; $50 million of class A-1 loans at Libor plus 145 bps; $36.6 million of class A-2 floating-rate notes at Libor plus 210 bps; $20.9 million of class B floating-rate notes at Libor plus 305 bps; $12 million of class C floating-rate notes at Libor plus 375 bps; $20 million of class D floating-rate notes at Libor plus 545 bps; $4.4 million of class E floating-rate notes at Libor plus 650 bps and $33.45 million of subordinated notes.
J.P. Morgan Securities LLC arranged the offering.
Zais Leveraged Loan Manager 2, LLC will manage the CLO.
The CLO has a 2.1-year non-call period and a 4.1-year reinvestment period.
Collateral consists primarily of broadly syndicated first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase a portfolio of about $325 million of leveraged loans.
Zais Group was last in the primary market in March with the $310 million Zais CLO 1, Ltd./Zais CLO 1, LLC deal.
The structured credit asset management firm is based in Red Bank, N.J.
| Issuer: | Zais CLO 2, Ltd./Zais CLO 2, LLC
|
| Amount: | $333.75 million
|
| Maturity: | July 27, 2026
|
| Securities: | Fixed-rate, floating-rate and subordinated notes and floating-rate loans
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Zais Leveraged Loan Manager 2, LLC
|
| Call feature: | 2.1 years
|
| Pricing date: | Sept. 9
|
| Distribution: | Rule 144A
|
|
|
| Class A-1A notes
|
| Amount: | $106.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $50 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.57%
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1 loans
|
| Amount: | $50 million
|
| Securities: | Loans
|
| Coupon: | Libor plus 145 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $36.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Rating: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $20.9 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 305 bps
|
| Rating: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $12 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $20 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 545 bps
|
| Rating: | Non-rated
|
|
|
| Class E notes
|
| Amount: | $4.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Rating: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $33.45 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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