Steele Creek Investment plans manager’s second CLO deal; Voya to refinance 2016 CLO

By Cristal Cody

Tupelo, Miss., July 24 – Two CLO managers plan to tap the primary and refinancing markets.

Steele Creek Investment Management LLC is offering $404.9 million of notes in the manager’s second new CLO deal of 2019.

In refinancing activity, Voya Alternative Asset Management LLC plans to reprice $368.1 million of notes from a vintage 2016 CLO.

Nearly $60 billion of new issue broadly syndicated CLOs and more than $27 billion of vintage CLOs have been brought to the primary and refinancing markets year to date, according to informed sources.

Steele Creek on tap

Steele Creek Investment Management plans to price $404.9 million of notes due July 15, 2032 in the transaction, market sources said.

The Steele Creek CLO 2019-2 Ltd./Steele Creek CLO 2019-2, LLC deal includes $215 million of class A-1 floating-rate notes (/AAA/AAA); $41 million of class A-2 fixed-rate notes (/AAA/AAA); $44 million of class B floating-rate notes (/AA/); $26 million of class C deferrable floating-rate notes (/A/); $24 million of class D deferrable floating-rate notes (/BBB-/); $15 million of class E deferrable floating-rate notes (/BB-/) and $39.9 million of subordinated notes.

Wells Fargo Securities, LLC is the placement agent.

The CLO is collateralized entirely by first-lien senior secured loans.

The deal is expected to close Aug. 30.

Steele Creek Investment Management has priced one new CLO offering year to date.

The CLO manager priced two new CLOs in 2018.

Steele Creek Investment Management is a Charlotte, N.C.-based asset management firm and subsidiary of global advisory firm Moelis & Co. LLC.

Voya to refinance notes

Voya Alternative Asset Management plans to price $368.1 million of notes due July 19, 2028 in a refinancing of the Voya CLO 2016-2, Ltd./Voya CLO 2016-2 LLC offering, according to a notice of proposed first supplemental indenture.

Voya CLO 2016-2 intends to price $259 million of class A-1-R floating-rate notes (expected ratings Aaa//AAA), $45.9 million of class A-2-R floating-rate notes (expected ratings Aa2); $25.6 million of class B-R deferrable floating-rate notes (expected ratings A2); $21.2 million of class C-R deferrable floating-rate notes (expected ratings Baa3) and $16.4 million of class D-R deferrable floating-rate notes (expected ratings Ba3).

Credit Suisse Securities (USA) LLC is the refinancing placement agent.

In the original transaction issued July 19, 2016, the CLO priced $259 million of class A-1 floating-rate notes at Libor plus 154 basis points, $45.9 million of class A-2A floating-rate notes at Libor plus 210 bps; $25.6 million of class B floating-rate notes at Libor plus 290 bps; $21.2 million of class C floating-rate notes at Libor plus 425 bps; $16.4 million of class D floating-rate notes at Libor plus 695 bps and $39.15 million of subordinated notes.

Voya Alternative Asset Management is an affiliate of New York City-based Voya Investment Management LLC.

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