Silvermine Capital Management is back on the market with a $400 million collateralized loan obligation, according to a presale report published by Fitch Ratings.

Net proceeds from the deal, Silver Spring CLO, will be used to repay parties that provided interim financing, allowing the issuer to purchase collateral prior to the closing date.  The remainder of the net proceeds will be used to purchase assets to reach a portfolio of leveraged loans, which consists of 93.5% of senior-secured loans.

The portfolio includes 89 loans from 79 high yield obligors, accounting for 80% of the pool, and 36 unidentified assets with assumed characteristics constituting the remaining 20%.

Nine tranches of notes will be issued, including a $258 million class A-1 tranche that Fitch assigned ‘AAA’ preliminary ratings.  The notes, maturing in October 2026, will be marketed at three-month Libor plus 153 basis points.  They benefit from a credit enhancement of 35.5%.

The deal has a standard four-year reinvestment period and two-year non-call period—both in line with recent CLO transactions.

Barclays Capital is the arranger.

Silvermine’s last CLO transaction was $500 million Silvermore CLO, issued in May.  Fitch rated the $322.5 million class A-1 notes, which benefit from a credit enhancement of 35.5%, ‘AAA.’  The deal has a four-year reinvestment period and two-year non-call period.

Founded in 2005, Silvermine Capital Management is an independent SEC-registered investment advisor, with approximately $3.5 billion in assets under management.  The firm is headquartered in Stamford, CT.

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