3i Debt Management US, a unit of 3i Group plc, has closed on its fourth collateralized loan obligation since it was established in 2012.
The $416 million transaction, dubbed COA Summit CLO, issued four classes of investment grade debt totaling $350 million and $66 million of non-investment grade mezzanine and subordinated notes, according to a press released published today.
The $256 million senior tranche, which is rated Aaa’ by Moody’s Investors Service, priced at a spread of 135 basis points over Libor. That is narrower than many recent transactions that have marketed senior notes in the 145-150 basis point range.
The transaction also has a one-year investment period, which is significantly shorter than the average of three to four years. However it is not usual for CLOs to offer a single tranche of senior notes that re-prices after 18 months, and these notes typically offer much lower spreads than longer-dated senior notes.
3i Deb Management US has raised $1.9 billion to date, according to the press release.