CLO market action slows on pandemic; Elmwood prices; Benefit Street, Mariner refinance

By Cristal Cody

Tupelo, Miss., March 13 – CLO primary market activity slowed in response to disruptions caused by the coronavirus, while the secondary market has been active this week.

CLO managers’ business continuity plans may be implemented during the pandemic, Fitch Ratings said in a report on Friday.

“Fitch recently polled a group of select managers in elevated virus-exposure regions and found that, while none had yet to formally initiate work-from-home procedures at that time, most were at least contemplating it and have been preparing with system tests and/or rotational absences,” Fitch said.

Looking at the structured finance market, Fitch said that it “does not currently expect disruption from the coronavirus to create negative rating risk in any global structured finance sector as long as the economic stress remains temporary and economic activity recovers relatively quickly.”

In CLO primary market activity, Elmwood Asset Management LLC priced $506.7 million of notes in a new broadly syndicated CLO.

Benefit Street Partners LLC refinanced $450 million of notes in two tranches from a vintage 2017 broadly syndicated CLO.

Mariner Investment Group, LLC priced a $440 million second refinancing of vintage 2016 broadly syndicated CLO notes.

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