THL prices upsized $612 million 2017-1 CLO; PGIM, CELF refinance euro CLOs; secondary thins

By Cristal Cody

Tupelo, Miss., Feb. 6 – New CLO deal action is beginning to pick up after a slow start to 2017 while the refinancing pace remains steady in the U.S. and European markets.

THL Credit Advisors LLC priced an upsized $612 million of notes in a new CLO deal.

Crescent Capital Group LP refinanced $478.5 million of notes in a U.S. CLO.

In the European market, CELF Advisors LLP priced €373.2 million of notes in a refinancing and reset of a vintage 2013 deal.

PGIM, Inc. refinanced €280.25 million of notes from a vintage 2014 CLO.

Secondary market action slowed over the past week with $400 million of bonds up for bid, compared to more than $1 billion on BWIC lists for each of the previous two weeks, according to a BofA Merrill Lynch note.

“With limited new supply in the primary market, the demand for secondary paper remained robust,” the analysts said in the report. “The top of the capital stack was particularly well bid, with 2.0 AAA to single-A spreads tightening by 5 [basis points] and BBB spreads tightening by 10 [bps week over week].”

CLO 2.0 AAA spreads were quoted better at Libor plus 120 bps in secondary trading.

THL upsizes new CLO

THL Credit Advisors priced $612 million of notes due April 15, 2029 in the new THL Credit Wind River 2017-1 CLO Ltd./THL Credit Wind River 2017-1 LLC transaction, according to a market source.

The CLO sold $390 million of class A senior secured floating-rate notes at Libor plus 134 bps in the senior tranche.

The deal was upsized from an initial amount of $510.75 million.

Morgan Stanley & Co. LLC was the placement agent.

Proceeds from the offering will be used to purchase a portfolio of about $500 million of mostly first lien senior secured leveraged loans.

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

THL Credit Advisors was in the market in 2016 with two new CLOs and one refinanced transaction.

The alternative credit investment firm is based in Boston.

Crescent Capital brings refinancing

Crescent Capital Group sold $478.5 million of notes due Oct. 15, 2026 at par in a refinancing of the 2014 Atlas Senior Loan Fund VI, Ltd. transaction, according to a market source.

Atlas Senior Loan Fund VI priced $340.45 million of class A-R senior secured floating-rate notes at Libor plus 125 bps in the AAA-rated tranche.

Morgan Stanley & Co. LLC arranged the deal.

The transaction is collateralized primarily by first lien senior secured corporate loans.

Crescent Capital priced one new CLO and refinanced two vintage CLOs in 2016.

The alternative asset management firm is based in Los Angeles.

CELF refinances €373.2 million

CELF Advisors priced €373.2 million of notes in a refinancing and reset of a vintage 2013 euro-denominated CLO offering, according to a market source.

Carlyle Global Market Strategies Euro CLO 2013-1 BV sold €236 million of class A-1-R floating-rate notes at Euribor plus 98 bps at the top of the capital structure.

Credit Suisse Securities (Europe) Ltd. was the refinancing agent.

The maturity on the new notes was extended to April 15, 2030 from the original Aug. 15, 2025 due date.

The deal is collateralized primarily by euro-denominated broadly syndicated senior secured loans and bonds.

Proceeds from the offering will be used to redeem the original notes.

CELF Advisors was last in the market in 2016 with two new CLOs and two refinanced CLO transactions.

The London-based CLO manager is part of Washington, D.C.-based Carlyle Group LP.

PGIM refinances 2014 CLO

PGIM sold €280.25 million of notes due Aug. 3, 2026 in a refinancing of a vintage 2014 Europe CLO, according to a market source.

Dryden 32 Euro CLO 2014 BV priced €199.25 million of senior secured floating-rate notes at Euribor plus 93 bps in the Class A-1A-R tranche.

Barclays was the refinancing agent.

PGIM will continue to manage the CLO.

Proceeds will be used to redeem the original notes.

The CLO manager priced two euro-denominated CLOs and refinanced one vintage CLO in 2016.

The investment management firm is part of Newark, N.J.-based Prudential Financial Inc.

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