Romark, PPM, Teachers Advisors, Octagon, American Money refinance CLOs; outflows rise

By Cristal Cody

Tupelo, Miss., Sept. 25 – The CLO refinancing space has been steady in September with five more managers repricing vintage notes.

Romark CLO Advisors LLC priced $23 million of notes in a partial refinancing of a refinanced 2018 CLO.

PPM Loan Management Co., LLC refinanced $19 million of notes from a 2018 CLO.

Teachers Advisors LLC priced $17 million of notes in a partial second refinancing of a vintage 2016 deal.

Octagon Credit Investors, LLC refinanced $22.5 million of notes in a partial second refinancing of a 2016 CLO.

Also, American Money Management Corp. priced $30 million of notes in a partial third refinancing of a vintage 2012 CLO offering.

About $53 billion of new CLOs have priced year to date, while about $28 billion of vintage CLOs have been refinanced, according to market sources.

CLO issuance is forecast to top out at $80 billion for the year with as little as $60 billion anticipated, according to a Wells Fargo Securities, LLC report on Friday.

CLO spreads are likely to be pushed marginally wider in the fourth quarter on the back of heavy U.S. issuance and risk-off moves as the U.S. presidential election nears, Wells Fargo analysts said in the note.

New issue AAA spreads are printing in the Libor plus 125 basis points to 128 bps range.

Primary CLO BB tranches in September are pricing in the Libor plus 750 bps area, the analysts said.

Elsewhere, leveraged loan fund outflows climbed to $261 million for the past week ended Wednesday, up from $17.4 million of outflows in the prior week, according to a Fitch Ratings report on Friday.

Year-to-date net outflows total $19.6 billion.

Romark refinances notes

Romark CLO Advisors priced $23 million of notes due April 20, 2031 in the partial refinancing, according to market sources.

Romark WM-R Ltd./Romark WM-R LLC sold $23 million of 2.54% class B-2-R fixed-rate notes.

In the transaction issued April 12, 2018, the CLO sold $23 million of 4.27% class B-2 fixed-rate notes. Romark WM-R was issued in 2018 as a refinancing of the vintage 2014 Washington Mill CLO Ltd. transaction.

Citigroup Global Markets Inc. was the refinancing agent.

The CLO is collateralized primarily by broadly syndicated senior secured corporate loans.

Romark CLO Advisors is an affiliate of New York-based investment firm Shenkman Capital Management, Inc.

PPM refinances $19 million

PPM Loan Management refinanced $19 million of notes due July 15, 2031 from a 2018 CLO issue, according to market sources.

PPM CLO 2018-1, Ltd. sold $19 million of 2.29% class B-1-R fixed-rate notes.

The CLO originally issued $19 million of 2.31% class B-1 fixed-rate notes on Aug. 3, 2018.

Goldman Sachs & Co. LLC was the refinancing agent.

The notes are collateralized primarily by broadly syndicated first-lien senior secured corporate loans.

The CLO manager is based in Chicago.

TIAA reprices 2016 notes

Teachers Advisors priced $17 million of notes due July 20, 2031 in a partial second refinancing of a vintage 2016 CLO offering, according to market sources.

TIAA CLO I Ltd./TIAA CLO I LLC sold $285.75 million of 2.534% class B-2-RR senior secured fixed-rate notes.

The CLO was originally issued June 23, 2016 and was first refinanced on July 20, 2018.

In the first refinancing, the CLO had priced $17 million of 4.589% class B-2-R senior secured fixed-rate notes.

In the original transaction, the CLO priced $47.25 million of class B floating-rate notes at Libor plus 230 bps.

MUFG was the refinancing agent.

The CLO is collateralized primarily by senior secured loans, with the majority of loan issuers based in the United States or Canada.

The New York-based financial services company is a subsidiary of TIAA Global Asset Management.

Octagon refinances

Octagon Credit Investors refinanced $22.5 million of notes in a partial second refinancing of the Octagon Investment Partners 27, Ltd./Octagon Investment Partners 27, LLC transaction, according to market sources.

The CLO sold $22.5 million of 2.4% class B-2-RR fixed-rate notes due July 15, 2030.

Octagon had priced $22.5 million of 4.5% class B-2-R notes in a refinancing of the CLO on May 21, 2018. The 27 CLO was first issued on June 28, 2016.

BofA Securities, Inc. was the refinancing agent.

The offering is backed primarily by broadly syndicated senior secured corporate loans.

Octagon Credit Investors is a New York-based credit investment firm that is majority owned by Conning & Co.

American Money reprices

American Money Management priced $30 million of notes due April 2031 in a partial third refinancing of a vintage 2012 CLO, according to market sources.

AMMC CLO XI, Ltd./AMMC CLO XI Corp. sold $30 million of 1.831% class A-2-R3 senior secured fixed-rate notes (Aaa/AAA).

SG Americas Securities, LLC was the refinancing placement agent.

The CLO was originally issued on Oct. 17, 2012 and was first refinanced on Oct. 31, 2016 and refinanced a second time on April 30, 2018.

In the second refinancing, the CLO had sold $30 million of 4.0024% class A-2-R2 senior secured fixed-rate notes.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

American Money Management is a Cincinnati-based firm and subsidiary of insurance holding company American Financial Group, Inc.

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