CLO primary, refinancing markets active; Anchorage reprices CDO; MJX to refinance CLO

By Cristal Cody

Tupelo, Miss., July 29 – CLO pricing action is picking up in late July with a number of managers pricing new CLOs and entering the refinancing space, according to market sources on Monday.

Steele Creek Investment Management LLC priced $405 million of notes in the Steele Creek CLO 2019-2 Ltd./Steele Creek CLO 2019-2, LLC deal via Wells Fargo Securities, LLC.

Also, DoubleLine Capital LP sold $406.25 million of notes in the Parallel 2019-1 Ltd./Parallel 2019-1 LLC deal.

Morgan Stanley & Co. LLC was the placement agent.

In addition, Whitebox Capital Management, LLC priced $401 million of notes in the Whitebox CLO I Ltd./Whitebox CLO I LLC transaction via J.P. Morgan Securities LLC.

Final pricing details were not immediately available.

The primary market saw nearly $5 billion of new issue CLOs print in 10 deals last week with discount margins as tight as Libor plus 130 basis points and as wide as 139 bps for AAA-rated tranches, according to a BofA research note released on Monday.

In refinancing activity, Anchorage Capital Group, LLC sold $514.1 million of notes in a reset of a 2015 CDO.

Meanwhile, MJX Asset Management LLC plans to refinance notes and loans from a 2016 CLO deal.

In Europe, deal volume also has been strong in July but is projected to slow in August, according to the BofA report.

“After this week, we see the pipeline nearly empty of traditional securitization deals and the CLO pipeline at the lowest we have seen it in a long time,” the note said. “Overall we continue to expect a slow August on the primary, unless some issuers in crisis-prone jurisdictions decide to fast track deals they are preparing for September.”

Anchorage prices CLO

Anchorage Capital Group, LLC sold $514.1 million of notes in a refinancing of the Anchorage Credit Funding 1, Ltd./Anchorage Credit Funding 1, LLC transaction, according to a notice of executed and restated indenture on Monday.

Anchorage Credit Funding 1 priced $246.8 million of 3.9% class A-R fixed-rate notes and $76.3 million of 4.65% class B-R fixed-rate notes in the senior secured tranches.

GreensLedge Capital Markets LLC was the refinancing placement agent.

The maturity was extended to July 28, 2037 from July 28, 2030.

The CDO originally was issued June 9, 2015. In that offering, the deal included $254.2 million of 4.3% class A senior secured fixed-rate notes and $63.5 million of 5.3% class B senior secured fixed-rate notes.

Proceeds were used to redeem the original notes.

The transaction is collateralized primarily by corporate bonds and loans.

The global asset manager is based in New York.

MJX to reprice Venture XXIV

MJX Asset Management plans to refinance notes and loans due Oct. 17, 2028 from the 2016 vintage Venture XXIV CLO, Ltd. offering, according to a notice of proposed amendment and restatement of indenture.

The deal includes class A-X amortizing senior secured floating-rate notes (expected ratings Aaa), class A-1R senior secured floating-rate notes (expected ratings Aaa), class A-2R senior secured floating-rate loans (expected ratings Aaa), class A-2R senior secured floating-rate notes (expected ratings Aaa), class B-R senior secured floating-rate notes (expected ratings Aa2), class C-R mezzanine secured deferrable floating-rate notes (expected ratings A2), class D-R mezzanine secured deferrable floating-rate notes (expected ratings Baa3), class E-R mezzanine secured deferrable floating-rate notes (expected ratings Ba3) and subordinated notes.

Jefferies LLC is the refinancing placement agent.

The original $525.45 million deal was issued Sept. 20, 2016. The CLO priced $129 million of class A-1D floating-rate notes at Libor plus 142 bps, $79 million of class A-1P floating-rate notes at Libor plus 156 bps, $86 million of class A-2A loans at Libor plus 147 bps, $14 million of class A-2B floating-rate notes at Libor plus 180 bps and $30 million of 2.71% class A-F fixed-rate notes.

The CLO also had priced $58 million of class B floating-rate notes at Libor plus 205 bps; $22.5 million of class C-1 floating-rate notes at Libor plus 290 bps; $12 million of 4% class C-F fixed-rate notes; $15 million of class D-1 floating-rate notes at Libor plus 425 bps; $12 million of class D-2 floating-rate notes at Libor plus 405 bps; $25.5 million of class E floating-rate notes at Libor plus 672 bps and $42.45 million of subordinated notes.

Proceeds will be used to redeem the outstanding notes on Aug. 23.

The CLO is backed primarily by broadly syndicated loans.

MJX Asset Management is a New York City-based asset management company.

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