MJX Asset Management refinances $740 million CLO; refinancing pace strong in 2017

By Cristal Cody

Tupelo, Miss., March 1 – MJX Asset Management LLC came to the CLO market to refinance and reset $740 million of notes from a vintage 2013 CLO deal.

The refinancing pace is not expected to slow down in the near term, market sources report.

More than $22 billion of U.S. dollar CLOs have been refinanced over the past two months, according to informed sources.

MJX Asset Management priced $740 million of 2017 notes in a refinancing and reset of the Venture XII CLO, Ltd./Venture XII CLO, LLC transaction, according to a market source and a notice of executed supplemental indenture dated Tuesday.

The CLO sold $475 million of class A-R senior secured floating-rate notes at Libor plus 123 basis points in the senior tranche.

Jefferies LLC arranged the transaction.

MJX subsidiary MJX Venture Management LLC will continue to manage the CLO.

The refinanced CLO has an extended maturity, reinvestment period, non-call period and a maximum weighted average life.

The maturity was extended by two years to Feb. 28, 2026.

Proceeds from the transaction, backed mostly by broadly syndicated first-lien senior secured corporate loans, were used to redeem the original notes on Tuesday.

The New York City-based asset management firm priced three new CLO transactions and refinanced three CLOs in 2016.

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