Apollo refinances euro CLO; Palmer Square, DoubleLine reprice; refinancing spreads flat

By Cristal Cody

Tupelo, Miss., Feb. 3 – Apollo Management International LLP priced €372.5 million of notes in a second refinancing of a vintage 2014 euro-denominated CLO.

In new dollar-denominated refinancing activity, Palmer Square Capital Management LLC brought a $511.5 million second refinancing of a 2015 vintage CLO.

DoubleLine Capital LP also refinanced $350 million of notes from a 2017 broadly syndicated CLO.

New issue spreads were flat to about 10 basis points tighter across the stack on average from a week earlier, while spreads were unchanged in refinancings, according to a Wells Fargo Securities LLC research note on Friday.

Dollar-denominated CLO AAAs ended January with an average new issue print in the Libor plus 126 bps area and at Libor plus 99 bps in the refinancing space.

New issue AAAs were an average 1 bp tighter on the week, while refinanced AAA spreads were unchanged.

Primary CLO A-rated tranches ended Friday an average 10 bps better in the Libor plus 205 bps area, the Wells Fargo note said.

Lower down the stack, BBB new issue tranches were unchanged on average in the new issue and refinancing markets at Libor plus 310 bps.

Apollo refinances ALME III

Apollo Management International priced €372.5 million of notes in the second refinancing, according to a market source and a notice to noteholders.

ALME Loan Funding III DAC sold €250.4 million of class A-RR senior secured floating-rate notes (Aaa//AAA) at Euribor plus 77 bps in the senior tranche.

Goldman Sachs International was the refinancing agent.

The maturity was extended to April 15, 2032 from April 15, 2030 and the original July 15, 2028 maturity.

ALME Loan Funding III was originally issued as a €411.1 million transaction on Dec. 11, 2014 and was first refinanced on April 18, 2017.

The CLO is primarily collateralized by senior secured obligations.

Apollo Management is an investment firm based in London.

Palmer Square prices

Palmer Square Capital Management priced a $511.5 million second refinancing of a 2015 vintage CLO offering, according to a market source.

Palmer Square CLO 2015-2, Ltd./Palmer Square CLO 2015-2, LLC sold $357.5 million of the class A-1-R2 senior secured floating-rate notes at par to yield Libor plus 110 bps.

Citigroup Global Markets Inc. was the refinancing placement agent.

The original $408.15 million transaction was issued July 25, 2015 and was first refinanced in a $557.6 million offering on July 20, 2017.

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

Palmer Square Capital is an investment management firm based in Leawood, Kan.

DoubleLine refinances

DoubleLine Capital priced $350 million notes in a refinancing of the Parallel 2017-1 Ltd./Parallel 2017-1 LLC CLO, according to market sources.

The CLO sold $252 million of the class A-1-R floating-rate notes at par to yield Libor plus 103 bps.

Citigroup was the refinancing placement agent.

The original $409.5 million transaction was issued June 7, 2017.

Collateral consists of broadly syndicated first-lien senior secured corporate loans.

DoubleLine Capital is an investment management firm based in Los Angeles.

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