DoubleLine sells $406.25 million CLO; GLG reprices; DFG, 325 Fillmore to refinance

By Cristal Cody

Tupelo, Miss., Aug. 9 – In new dollar-denominated CLO issuance, DoubleLine Capital LP priced $406.25 million of notes in the manager’s first CLO deal this year.

Looking at the refinancing market, GLG Partners LP repriced €224.7 million of notes in two tranches from a 2016 European CLO deal.

DFG Investment Partners, Inc. plans to refinance dollar-denominated notes from a vintage 2016 CLO.

Meanwhile, the Arrowpoint CLO 2013-1 Ltd./Arrowpoint CLO 2013-1 LLC transaction also will be repriced to include a tranche of loans.

“In the CLO market, after a volatile week, top tier, clean deals saw little change in spreads (on very few data points),” Wells Fargo Securities LLC analysts Dave Preston and Powell Eddins said in a note on Friday.

However, “tiering continues to increase, and spreads continue to widen on deals with more risky portfolios,” the analysts said. “As the number of problematic loans increases, we expect more tiering – and more disparity in manager performance.”

This week, in the secondary market, CLO AAA spreads were flat at Libor plus 124 basis points after softening 2 bps in the previous week, according to the report.

AAs eased about 5 bps on average to Libor plus 185 bps this week. CLO BBB spreads softened an average 5 bps in the secondary market on the week to the Libor plus 355 bps area after tightening 20 bps in the prior week.

In the primary market, new CLO AAA-rated tranches are pricing on average in the Libor plus 132 bps area, while BBBs are printing the Libor plus 380 bps area, the Wells Fargo note said.

In other market activity, outflows from leveraged loans, high-yield bonds, emerging market bonds and government bonds were behind outflows from fixed income for the past week ended Wednesday, Yuri Seliger, a credit strategist with BofA, said in a research note released on Friday.

Leveraged loan outflows rose to $730 million from $480 million in the previous week and $420 million in the prior week.

DoubleLine prices

DoubleLine Capital priced $406.25 million of notes due July 20, 2032 in the new CLO offering, according to a market source.

Parallel 2019-1 Ltd./Parallel 2019-1 LLC sold $3 million of class X senior secured floating-rate notes (Aaa/AAA/) at Libor plus 65 bps, $244 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 136 bps and $16 million of class A-2 senior secured floating-rate notes (Aaa/non-rated/) at Libor plus 175 bps at the top of the capital stack.

Morgan Stanley & Co. LLC was the placement agent.

The CLO is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.

DoubleLine Capital priced two new issue CLOs in 2018. The CLO manager brought its first CLO deal to the primary market in 2015 and its second CLO transaction in 2017.

The investment management firm is based in Los Angeles.

GLG refinances

GLG Partners sold €224.7 million of notes due Jan. 15, 2030 in a refinancing of two tranches from the firm’s CLO transaction first priced in 2016, according to a market source.

GLG Euro CLO II DAC sold €207 million of the class A-1-R senior secured floating-rate notes at par to yield Euribor plus 87 bps.

The placement agent was Morgan Stanley & Co. International plc.

In the original GLG Euro CLO II offering issued Dec. 14, 2016, the CLO sold €207 million of class A-1 senior secured floating-rate notes at Euribor plus 103 bps.

The CLO is backed primarily by secured senior loans and bonds.

GLG Partners is an alternative asset manager based in London.

DFG to reprice Vibrant CLO

DFG Investment Partners plans to refinance notes from a vintage 2016 CLO offering, according to a notice of revised proposed supplemental indenture and notice of optional redemption on Thursday.

The Vibrant CLO IV Ltd./Vibrant CLO IV LLC deal includes class A-1-R senior secured floating-rate notes (Aaa//AAA); class A-2-R senior secured floating-rate notes (expected rating Aaa); class B-R senior secured floating-rate notes (expected rating Aa2); class C-R secured deferrable floating-rate notes (expected rating A2); class D-R secured deferrable floating-rate notes (expected rating Baa3); class E-R secured deferrable floating-rate notes (expected rating Ba3) and subordinated notes.

Morgan Stanley is the refinancing placement agent.

The maturity will be extended to July 2032 from July 2028.

The original $406 million CLO was issued June 10, 2016.

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

DFG Investment Advisors priced three new CLOs in 2018.

The asset management firm is based in New York.

Elevation CLO to print

The Arrowpoint CLO 2013-1 Ltd./Arrowpoint CLO 2013-1 LLC transaction will be refinanced and renamed and renamed Elevation CLO 2013-1, Ltd./Elevation CLO 2013-1, LLC as previously reported with some changes, according to a notice of revised proposed fourth supplemental indenture on Thursday.

The deal will include a tranche of loans.

The CLO intends to price class X notes (expected rating AAA), class A-L loans (expected rating AA), class B-R2 notes (expected rating A), class C-R2 notes (expected rating BBB-) and class D-R2 notes (expected rating BB-).

The refinancing previously was expected to include class X notes, class A-1-R2 notes, class A-2-R2 notes, class B-R2 notes, class C-R2 notes and class D-R2 notes.

Goldman Sachs & Co. is the refinancing placement agent.

The CLO manager of the refinanced CLO will be 325 Fillmore LLC.

Arrowpoint CLO 2013-1 was originally issued on April 25, 2013.

The CLO was first refinanced in a $331.2 million offering of notes due Nov. 15, 2028 on Nov. 25, 2016.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

325 Fillmore is an investment management firm based in Denver.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.