Five Arrows Managers refinances 2013 CLO notes; securitized secondary trading volume thin

By Cristal Cody

Tupelo, Miss., Aug. 30 – Five Arrows Managers North America LLC is the most recent CLO manager in August to close on a refinancing of a 2013 CLO.

Five Arrows refinanced $358 million of notes from the deal.

More than $117 billion of CLOS have been refinanced year to date, according to market sources.

Secondary trading in the securitized markets remains light over the last week of August.

On Tuesday, $46.27 million of high-grade CBO/CDO/CLO issues and $66.99 million of non-investment-grade securities were traded, according to Trace.

Monday’s session saw a total of $47.32 million of investment-grade securities and $20.35 million of lower-rated issues trade.

In its deal, Five Arrows Managers North America refinanced $358 million of floating-rate notes due Aug. 13, 2025 in the Ocean Trails CLO IV/Ocean Trails CLO IV LLC transaction, according to a market source and a notice on Tuesday of executed second supplemental indenture.

The CLO priced $242.5 million of class A-R floating-rate notes at Libor plus 90 basis points in the AAA-rated tranche.

Nomura Securities International, Inc. arranged the transaction.

Five Arrows Managers, formerly known as West Gate Horizons Advisors, LLC, is the CLO manager.

In the original $402.65 million transaction issued on Aug. 29, 2013, the CLO sold the $242.5 million of class A floating-rate notes at Libor plus 130 bps.

Proceeds were used to redeem the original class A, B, C, D and E notes.

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