Crestline Investors, a Fort Worth, Texas-based alternative investment manager, recently sold a $1 billion, collateralized loan obligation to investors, in one of the largest middle-market deals from that asset class for 2024.
The deal sold four tranches of securities to investors, composed of classes A and B notes. Classes A-L-A and A-L-B were offered as loans, according to the company. The transaction has a four-month reinvestment period, and twelve-month, non-call period, according to a statement from Crestline, which will also manage the deal.
The pool is composed of middle-market, senior-secured loans that Crestline originated and managed. The Crestline Specialty Lending III fund will retain all the transaction's equity interests, according to the company.
S&P Global Markets assigned ratings of AAA, AA, A and BBB- to the transaction. All the notes were priced against the three-month Secured Overnight Financing Rate (SOFR). Closing yields came in at S+1.65% (AAA); S+1.75% (AA); S+2.30% (A) and S+3.85% (BBB-), according to the company.
GreensLedge Capital Markets served as arranger and lead placement agent. NatWest Markets Securities, meanwhile, served as co-placement agent and KeyBanc Capital Markets served as co-structuring agent, the company said.
