Crescent Capital refinances CLO; non-investment-grade securitized secondary volume strong

By Cristal Cody

Eureka Springs, Ark., Oct. 19 – Refinancing activity continues to make up the bulk of October action in the CLO markets.

Crescent Capital Group LP refinanced $405.5 million of notes in three tranches from a 2014 deal.

More than $7 billion of CLOs have been refinanced just in the past three weeks, according to a J.P. Morgan Securities LLC note.

Secondary trading volume in the non-investment-grade sector has been strong over the first two sessions of the week, Trace reported.

On Tuesday, $172.9 million in 29 high-grade CBO/CDO/CLO issues and $260.4 million in 32 non-investment-grade securities were traded.

High-grade CBO/CDO/CLO trading volume totaled $45.2 million on Monday, while $408 million of non-investment-grade securities traded on Monday, according to Trace.

Crescent Capital refinances

Crescent Capital Group refinanced $405.5 million of notes due July 16, 2026 at par in three tranches from a vintage 2014 CLO, according to a market source.

Atlas Senior Loan Fund V, Ltd. priced $310.5 million of class A-R senior secured floating-rate notes at Libor plus 143 basis points in the senior tranche.

Barclays was the refinancing agent.

The transaction is collateralized mainly by first-lien senior secured corporate loans.

Proceeds from the refinancing were used to redeem the original class A, B and C notes.

Crescent Capital has refinanced two vintage CLOs year to date.

The alternative asset management firm is based in Los Angeles.

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