Oaktree sells CLO; Eaton Vance, Och-Ziff refinance; refi volume nearly $26 billion to date

By Cristal Cody

Eureka Springs, Ark., Dec. 12 – CLO issuance and refinancing action continues to remain strong as the year comes to a close, market sources report.

In new issuance, Oaktree Capital Management LP priced a $601.66 million CLO.

In the refinancing space, both Eaton Vance Management and Och-Ziff Loan Management LP refinanced vintage 2013 deals.

Eaton Vance priced $401.9 million of notes in the transaction.

Och-Ziff Loan Management refinanced $583.26 million of notes.

“CLO new issuance conditions have remained robust heading into year-end,” J.P. Morgan Securities, LLC analysts said in a note released on Monday.

“The CLO refi/reset market has been wide open in both the U.S. and Europe the past few months and has set records in terms of volumes in 2016,” the analysts said.

According to a BofA Merrill Lynch note released on Monday, December CLO refinancing and reset volume totals about $3.9 billion, while more than $25.5 billion of CLOs have been refinanced year to date.

In its deal Oaktree Capital Management sold $601.66 million of notes due Oct. 20, 2027 in the new Oaktree EIF III Series I Ltd. transaction, according to a market source.

The CLO priced $372 million of class A floating-rate notes at Libor plus 141 basis points in the AAA-rated tranche.

Wells Fargo Securities LLC was the placement agent.

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