Octagon Credit Investors prices $517.6 million CLO; Credit Suisse eyes 2016 refinancing

By Cristal Cody

Tupelo, Miss., Oct. 25 – Octagon Credit Investors, LLC priced $517.6 million of notes this week in the manager’s sixth CLO deal of the year.

While the market has seen repeat issuers in 2019, 10 new managers also have issued broadly syndicated loan and middle-market CLOs so far this year, Fitch Ratings said in a report on Friday.

The total is the “same number of new managers logged in 2017 and 2018,” Fitch said.

In other deal activity, Credit Suisse Asset Management, LLC plans to refinance an $814.25 million 2016 vintage CLO.

Elsewhere, Blackstone/GSO Debt Funds Management Europe Ltd. gave notice on the remaining outstanding tranche from the vintage 2013 Herbert Park BV European CLO, the €44.68 million of subordinated notes due 2027.

The collateral manager said there is only one collateral obligation remaining in the portfolio of the issuer and “there is no reasonable expectation that future distributions with respect to such collateral obligation will be sufficient to meet the ongoing costs and expenses of the issuer,” according to a filing with the London Stock Exchange on Friday.

The CLO was priced on Aug. 9, 2013 and issued Sept. 12, 2013.

The notes were redeemed in full, except for the subordinated tranche, at par plus accrued interest on April 20, 2017.

The CLO manager announced it would release the collateral obligation in 15 business days.

Meanwhile, outflows from leveraged loans subsided to $500 million for the past week ended Wednesday from $840 million of outflows in the prior week, according to a BofA Merrill Lynch research note released Friday.

Octagon prices new CLO

Octagon Credit Investors priced $517.6 million of notes due Oct. 15, 2032 in a new CLO transaction, according to market sources.

Octagon Investment Partners 45, Ltd./Octagon Investment Partners 45, LLC sold $327 million of class A floating-rate notes Libor plus 133 basis points in the AAA-rated tranche.

Goldman Sachs & Co. LLC was the placement agent.

The transaction is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Octagon Credit Investors has priced six new CLOs year to date.

The New York-based non-high-grade corporate credit investment adviser is majority owned by Conning & Co.

CSAM plans deal reprint

Credit Suisse Asset Management plans to refinance notes from the $814.25 million 2016 vintage Madison Park Funding XXI Ltd. transaction, according to a notice of proposed amended and restated indenture on Friday.

The Rule 144A and Regulation S deal includes class X floating-rate notes, class A-1a-R floating-rate notes, class A-1b-R floating-rate notes, class A-2-R floating-rate notes, class B-R deferrable floating-rate notes, class C-R deferrable floating-rate notes, class D-R deferrable floating-rate notes and subordinated notes.

Citigroup Global Markets Inc. is the refinancing placement agent.

The original $814.25 million offering of notes due July 25, 2029 was priced on July 15, 2016 and issued Aug. 25, 2016.

Credit Suisse Asset Management is a unit of Credit Suisse Group AG.

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