THL to refinance firm’s second CLO deal of year; high-grade secondary market volume picks up

By Cristal Cody

Tupelo, Miss., June 29 – THL Credit Advisors LLC plans to refinance $416.3 million of notes from a 2013 vintage CLO in its second refinancing of the year.

More than $80 billion of vintage U.S. CLOs have been refinanced year to date, according to market sources. The space is expected to remain active into the fall, sources report.

Securitized secondary trading has been active over the week with $108.79 million of investment-grade CBO/CDO/CLO securities and $104.58 million of non-high-grade issues traded on Wednesday, according to Trace.

During Tuesday’s session, trading volume included $68.79 million of high-grade issues and $120.73 million of non-investment-grade securities.

On Monday, $132.87 million of investment-grade CBO/CDO/CLO securities and $192.73 million of non-high-grade issues were traded.

THL plans $416.3 million reset

THL Credit Advisors plans to issue $416.3 million of notes in a refinancing and reset of the THL Credit Wind River 2013-1 CLO Ltd./THL Credit Wind River 2013-1 LLC transaction, according to market sources and a notice of proposed second supplemental indenture on Wednesday.

The CLO will sell $289.3 million of class A-1R senior secured floating-rate notes (Aaa/AAA/); $52 million of class A-2-R senior secured floating-rate notes (/AA/); $29.4 million of class B-R senior secured deferrable floating-rate notes (/A/); $24.8 million of class C-R senior secured deferrable floating-rate notes (/BBB/); $20.2 million of class D-R senior secured deferrable floating-rate notes (/BB/) and an additional $600,000 of subordinated notes.

Barclays is the refinancing underwriter for the Rule 144A and Regulation S offering.

THL Credit Senior Loan Strategies LLC will manage the CLO.

The maturity on the new notes will be extended to July 20, 2030 from the original April 20, 2025 maturity.

Proceeds from the offering will be used to redeem all of the original floating-rate and fixed-rate notes on July 20.

THL Credit Advisors has priced two new CLOs and refinanced one vintage CLO year to date.

The Boston-based alternative credit investment firm priced two new CLOs and one refinanced CLO in 2016.

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