Hayfin Capital Management has launched its first U.S. CLO in a year, a $500 million offering of loans and notes offering collateralized by broadly syndicated leveraged loans.
Hayfin Kingsland X, as the deal is dubbed, will have a four-year reinvestment period for the manager to buy and sell loan assets in efforts to maintain or improve credit metrics in the transaction. It is non-callable for four years.
The Class A tranche, which consists of loans instead of bonds, carries preliminary triple A ratings from Fitch Ratings and Kroll Bond Rating Agency. The senior tranche is priced at 146 basis points over three-month Libor, according to the presale reports.
Neither of the agencies is rating the five subordinate note classes of notes to be issued totaling $140 million. The unrated residual tranche is sized at $40.5 million. The subordinate notes include three classes of notes (Class C, D and E) that have deferrable interest payments in the event overcollateralization or interest coverage test failures for the Class A and B notes.
The deal’s identified portfolio (featuring 194 corporate obligors) has a weighted average life is 6.75 years.
U.K.-based Hayfin Capital Management's U.S. affiliate was formerly Kingsland Capital Management, which it acquired in January 2018. It has issued three U.S. CLOs and two European deals since the acquisition.
