Alcentra NY prices $441.7 million CLO; Sound Point plans second refinancing; AAA spreads flat

By Cristal Cody

Tupelo, Miss., July 15 – In new CLO issuance, Alcentra NY, LLC priced $441.7 million of notes in the manager’s first dollar-denominated deal of the year.

In other activity, Sound Point Capital Management LP plans a second refinancing of notes from a 2015 CLO offering.

In the secondary market, $560 million of BWIC bonds were traded last week with volume concentrated in senior CLO tranches, according to a BofA Merrill Lynch research note released on Monday.

“Bids for IG paper generally held firm, while demand for mezzanine paper, especially BBBs, felt slightly weaker,” the note said. “As we've noted, given expectations for lower Libor on Fed easing, CLO spreads could be challenged near term.”

AAA spreads were on average unchanged on the week at the Libor plus 115 basis points area, according to the report.

Alcentra brings 2019-XIV

Alcentra NY priced $441.7 million of notes due July 20, 2030 in the new CLO offering, according to a market source.

Shackleton 2019-XIV CLO, Ltd./Shackleton 2019-XIV CLO LLC sold $287.1 million of class A-1 floating-rate notes at a discount margin of Libor plus 123 bps at the top of the capital stack.

Citigroup Global Markets Inc. was the placement agent.

The deal is backed primarily by broadly syndicated first lien senior secured corporate loans.

The New York-based firm is part of BNY Alcentra Group Holdings, Inc.

Sound Point preps reprint

Sound Point Capital Management plans to refinance its Sound Point CLO IX, Ltd./Sound Point CLO IX Inc. for a second time, according to a notice of proposed supplemental indenture No. 2 on Friday.

The deal will include class A-RR senior secured floating-rate notes (expected ratings Aaa//AAA), class B-RR senior secured floating-rate notes (expected ratings Aa2//), class C-RR deferrable mezzanine floating-rate notes (expected ratings A2//), class D-RR deferrable mezzanine floating-rate notes (expected ratings Baa3//), class E-RR deferrable junior floating-rate notes (expected ratings Ba3//), class F-RR deferrable junior floating-rate notes (expected ratings B3//) and additional subordinated notes.

Citigroup Global Markets Inc. is the refinancing placement agent.

Sound Point Capital Management will continue to manage the CLO.

The maturity on the second refinanced notes is expected to be extended from the original and first refinanced note maturity of July 20, 2027.

In the original $515.5 million Sound Point CLO IX transaction issued July 16, 2015, the CLO priced $325 million of class A floating-rate notes at Libor plus 152 basis points; $32.5 million of class B-1 floating-rate notes at Libor plus 200 bps; $25 million of class B-2 fixed-rate notes at 4.02%; $27.5 million of class C floating-rate notes at Libor plus 300 bps; $27.5 million of class D floating-rate notes at Libor plus 355 bps; $22.5 million of class E floating-rate notes at Libor plus 550 bps; $10 million of class F deferrable floating-rate notes at Libor plus 650 bps and $45.5 million of subordinated notes.

The CLO was first refinanced on Oct. 20, 2017.

Proceeds will be used to redeem the outstanding notes on July 22.

Sound Point Capital is a New York City-based asset management firm.

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