Madison Capital Funding is taking orders for a middle market $303 million CLO via Wells Fargo, sources told sister sister service Thomson Reuters Loan Pricing Corp. For the preliminary tranche structure on the company’s MCF CLO-1 see the table.
The deal assumes a 2 percent constant annual default rate and a 70 percent recovery on defaulted loans. Finally the company is modeling in a 20 percent prepayment rate.
The equity of the CLO will be retained by a strategic equity provider to Madison Capital.
Bill Cheung is a senior correspondent for Thomson Reuters LPC.
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