Guggenheim, KKR Financial Advisors II refinance CLOs; Mariner wraps 2015-1 refinancing

By Cristal Cody

Tupelo, Miss., April 20 – Two more CLO managers returned to the primary market to refinance existing CLOs.

Guggenheim Partners Investment Management, LLC sold $473.5 million of notes from a vintage 2014 deal.

KKR Financial Advisors II, LLC priced $463 million of notes in a refinancing of a 2013 CLO.

In other activity, Mariner Investment Group, LLC closed on Thursday on its $460.5 million refinancing of the Mariner CLO 2015-1 LLC deal. The CLO priced the $320 million class A-R tranche of floating-rate notes at Libor plus 129 basis points. J.P. Morgan Securities LLC was the refinancing agent.

More than $60 billion of U.S. CLOs have been refinanced year to date, market sources report.

In its deal, Guggenheim Partners Investment Management sold $473.5 million of notes in the vintage 2014 Ziggurat CLO Ltd./Ziggurat CLO LLC transaction, according to a notice of revised proposed supplemental indenture and optional redemption on Wednesday.

The CLO priced $320 million of senior secured floating-rate notes at Libor plus 130 bps in the class A-R tranche.

BofA Merrill Lynch was the refinancing agent.

The maturity on the new notes was extended to April 17, 2029 from the original Oct. 17, 2026 maturity.

The original CLO exited its two-year non-call period earlier in April. The CLO also had a four-year reinvestment period that could be extended for up to five years. The refinanced CLO now has a four-year reinvestment period that ends in April 2021.

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