GLG prices €309.2 million; CVC refinances Apidos CLO IX; Voya refinances two 2012 CLOs

By Cristal Cody

Tupelo, Miss., March 30 – European CLO issuance totals about €3 billion year to date following a €309.2 million deal from GLG Partners LP, according to a market source on Monday.

In the U.S. CLO market, refinancing activity jumped with three vintage 2012 deals priced with lower coupons, market sources said.

“Refinancing activity has picked up amidst tighter primary spreads,” BofA Merrill Lynch analysts said in a note.

All three refinanced CLOs were made compliant with Volcker risk retention regulations, the analysts said.

CVC Credit Partners, LLC refinanced $370,825,000 of notes in the Apidos CLO IX/Apidos CLO IX LLC transaction.

Voya Alternative Asset Management LLC refinanced $321.75 million of notes in the Voya CLO 2012-2, Ltd./Voya CLO 2012-2 LLC deal and $416.89 million of notes in the Voya CLO 2012-3, Ltd./Voya CLO 2012-3 LLC offering.

“According to the latest regulatory filing, all three of these CLOs have Prospect Capital (PSEC) as an equity investor,” Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note.

A total of four CLOs have been refinanced year to date.

J.P. Morgan Securities LLC analysts estimate up to 50 CLOs totaling $23 billion could refinance in 2015.

“Lower liability costs, Volckerization, and modified covenants are additional incentives as part of a refinancing, but the major reason is cost-saving: in 2015, refinanced CLOs saved an average 29 bps in weighted average liability cost,” the JPMorgan analysts said.

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