CLO refinancing space active; Palmer Square Capital refinances 2014 CLO for second time

By Cristal Cody

Tupelo, Miss., Jan. 10 – Palmer Square Capital Management LLC priced $370.4 million of notes in a second refinancing of the Palmer Square CLO 2014-1 Ltd./Palmer Square CLO 2014-1, LLC transaction.

The market saw a record $164 billion of CLO refinancing and reset volume in 2017.

Refinancing supply is expected to thin in 2018 but remain robust.

BofA Merrill Lynch analysts forecast $85 billion of refinancing and reset volume in 2018.

Palmer Square Capital Management priced $370.4 million of notes in the Palmer Square CLO 2014-1 transaction via J.P. Morgan Securities LLC, according to a market source and a notice of revised proposed supplemental indenture on Tuesday.

The CLO priced $244 million of class A-1-R2 senior secured floating-rate notes at Libor plus 113 basis points in the senior tranche.

The maturity on the notes was extended to Jan. 17, 2031 from the original Jan. 17, 2027 maturity.

The original $405.5 million CLO was issued June 5, 2014. The CLO sold $256 million of class A-1 senior secured floating-rate notes at Libor plus 127 bps at the top of the deal structure.

The 2014-1 CLO was refinanced for the first time on Jan. 17, 2017.

Proceeds from the second refinancing will be used to redeem the first refinanced notes.

Palmer Square Capital is an investment management firm based in Leawood, Kan.

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