GSO/Blackstone reprices 2016 CLO; Oaktree refinances €332.7 million; refinancings light

By Cristal Cody

Tupelo, Miss., May 28 – Two CLO managers priced dollar- and euro-denominated refinancings of vintage 2016 CLO transactions in May.

GSO/Blackstone Debt Funds Management LLC sold $588.8 million of notes in a refinancing of the Westcott Park CLO Ltd./Westcott Park CLO LLC deal originally issued June 30, 2016.

Oaktree Capital Management (UK) LLP refinanced €332.7 million from the Arbour CLO IV DAC transaction first priced on Sept. 30, 2016.

Moody’s Investors Service said in a May CLO report released on Friday that the lower pace of refinancings and resets was among the topics in focus among CLO market participants at its CLO and leveraged loan roundtable held in New York.

“Resets and refinancings have been much less prevalent than last year,” Moody’s said. “Many CLOs that had intended to reset late last year have instead chosen a less costly simple refinancing or continue to wait because CLO liability spreads remain uneconomical to reset.”

Moody’s said the majority of CLOs it has rated in 2019 have been new deals as opposed to resets and refinancings.

Year to date, more than $13 billion of vintage dollar-denominated CLOs have been refinanced, while about €2 billion of euro-denominated CLOs have repriced this year, according to market sources.

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