Invesco to refinance CLO; trading volume up in high-grade, non-investment-grade securities

By Cristal Cody

Eureka Springs, Ark., Jan. 13 – While the CLO new issue market remains quiet, refinancing action is gaining traction in January, according to sources on Friday.

Invesco Senior Secured Management, Inc. plans to refinance $534.5 million of notes in a vintage CLO in the week ahead.

In other activity, trading volume rose late in the week in the securitized secondary market.

Secondary trading was strong over Thursday’s session in both high-grade and non-investment-grade issues.

Total high-grade trading volume in the previous session was $330.18 million, compared to $170.09 million of CBO/CDO/CLO issues traded on Wednesday, according to Trace.

During Tuesday’s session, $210.04 million of issues traded, up from $44 million on Monday.

The previous session also saw $331.32 million of non-investment-grade securities traded, up from $284.6 million of CBO/CDO/CLO issues traded on Wednesday, Trace reported.

On Tuesday, $232.33 million of non-high-grade issues were traded, compared to $156.45 million of volume on Monday.

Invesco to refinance CLO

Invesco Senior Secured Management plans to refinance $534.5 million of notes due April 18, 2026 in the Limerock CLO II Ltd./Limerock CLO II LLC transaction, according to a market source on Friday.

The CLO will refinance $406.25 million of class A floating-rate notes (/AAA/), $59.75 million of class B-1 floating-rate notes (/BB/), $20 million of class B-2 fixed-rate notes (/AA/), $47 million of class C-1 floating-rate notes (/A/) and $1.5 million of class C-2 fixed-rate notes (/A/) on Wednesday.

Proceeds will be used to redeem the original notes.

Invesco Senior Secured Management, a subsidiary of Atlanta-based Invesco, Ltd., was last in the CLO primary market with a deal in 2014.

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