MidOcean Credit Partners plans to issue its third collaterized loan obligation, according to a presale report published by Standard & Poor’s. The $473.75 million deal trumps the first two transactions by more than $100 million.
The deal, MidOcean Credit CLO III, is backed by a revolving pool of primarily broadly syndicated senior loans. As of yesterday, the issuer identified 85.63% of the portfolio’s collateral.
Of the seven tranches of notes, S&P assigned AAA’ preliminary status to only the class A notes. The $312 million notes are offered at 146 basis points over three-month LIBOR. The notes can cannot be called until July 2016 and have a reinvestment period of four years.
Credit Suisse is the arranger for the deal.
MidOcean has two recent CLOs under its belt: MidOcean Credit CLO I and MidOcean Credit CLO II. CLO I, from April 2013, was a $370 million deal, and CLO II, a $372 million deal. Both transactions were backed by a revolving pool of broadly syndicated senior loans.
Founded in February 2003, MidOcean Partners is a private investment firm specializing in domestic and European, middle market investments. As of June 2014, MidoOcean had approximately $5 billion in total assets under management. The company is headquartered in New York, NY and London.
