CLO refinancing pace strong; American Money refinances; CF H-BSL refinances three CLOs

By Cristal Cody

Tupelo, Miss., April 3 – Vintage CLO refinancing action continues at a strong pace, with one manager refinancing three CLO deals in the past week.

American Money Management Corp. priced $466 million of notes in a refinancing of a vintage 2015 CLO.

CF H-BSL Management LLC refinanced three Hildene CLO transactions that were brought to the primary market in 2013 and 2014. Hildene Leveraged Credit LLC originally priced the CLOs and sold the management contracts for its four CLOs in 2016.

Just in the first quarter of 2017, $46 billion of CLOs were refinanced or reset, surpassing the total 2016 refinancing volume of $42 billion, according to a BofA Merrill Lynch Global research report released on Monday.

“New issuance conditions remain tough,” BofA Merrill Lynch analysts said in the note. “New-issue pricing levels have tightened alongside loan and secondary U.S. CLO spreads. AAAs reached its tightest print of 122 [basis points] during the quarter. The highlight of the quarter was certainly the volume of refi’s.”

The refinancings have been driven by trends in the loan market, J.P. Morgan Securities LLC analysts said in a note released on Monday.

“The active pipeline is robust and issuance – including refi/reset – is setting historical highs for the U.S. CLO market,” J.P. Morgan Securities LLC analysts said.

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