Avoca CLO XI refinances €465.3 million; Sound Point refinances firm’s seventh CLO of 2017

By Cristal Cody

Tupelo, Miss., May 5 – Details emerged for two new refinanced CLOs in the U.S. and European markets.

KKR Credit Advisors (Ireland) Unlimited Co. refinanced €465.3 million of notes from a 2014 deal.

Sound Point Capital Management LP refinanced $492 million of notes from a 2014 CLO in its seventh refinancing transaction year to date.

About €8 billion of euro CLOs and nearly $70 billion of U.S. CLOs have been refinanced year to date, according to market sources.

Euro CLO refinances

KKR Credit Advisors (Ireland) set rates for the refinancing of €465.3 million of notes due 2030 from the 2014 vintage Avoca CLO XI Ltd. collateralized loan obligation, according to a market source and a notice to noteholders on Friday.

The renamed Avoca CLO XI DAC priced €300 million of class A-R senior secured floating-rate notes at Euribor plus 89 basis points in the senior tranche.

Morgan Stanley & Co. International plc was the refinancing agent.

KKR Credit Advisors (Ireland), formerly known as Avoca Capital Holdings, is the CLO manager.

In the original €518.5 million CLO transaction priced on May 9, 2014, the CLO sold €275 million of class A senior secured floating-rate notes at Euribor plus 140 bps.

Proceeds will be used to redeem the original class A, B-1, B-2, C, D, E and F notes on May 26.

KKR Credit Advisors (Ireland) priced one new CLO and refinanced one CLO deal in 2016.

The credit investment management firm is based in Dublin.

Sound Point refinances CLO VI

Sound Point Capital Management refinanced $492 million of notes due Aug. 17, 2026 from the vintage 2014 Sound Point CLO VI, Ltd./Sound Point CLO VI, Inc. transaction, according to a notice of executed second supplemental indenture.

The CLO sold $360 million of class A-1-R senior secured floating-rate notes at Libor plus 114 bps at the top of the deal structure.

Credit Suisse Securities (USA) LLC arranged the deal.

Sound Point Capital will continue to manage the CLO.

In the original transaction priced on July 23, 2014, the CLO sold $360 million of class A-1 senior secured floating-rate notes at Libor plus 136 bps.

Proceeds from the refinancing were used to redeem the original class A-1, A-2, B and C notes.

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

Sound Point Capital has refinanced seven vintage CLOs year to date.

The New York-based asset management firm priced three new CLO deals in 2016.

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