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.

Guggenheim sells CLO

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.

In the original deal priced on Nov. 4, 2014, the CLO sold $290 million of class A-1 senior secured floating-rate notes at Libor plus 158 bps at the top of the capital stack.

Proceeds from the refinancing and additional class X notes will be used to redeem the original CLO notes on May 10.

Guggenheim has priced one new CLO and refinanced notes from two vintage CLOs year to date.

The CLO manager priced three new CLOs and two add-ons to existing CLOs in 2016.

The investment management firm and subsidiary of Guggenheim Partners, LLC is based in Santa Monica, Calif.

KKR refinances $463 million

KKR Financial Advisors II sold $463 million of notes in a refinancing of the KKR Financial CLO 2013-1 Ltd./KKR Financial CLO 2013-1 LLC transaction, according to a market source.

The CLO priced $325 million of class A-1-R senior secured floating-rate notes at Libor plus 129 bps in the senior tranche.

BofA Merrill Lynch arranged the offering.

The maturity on the refinanced notes was extended to April 15, 2029 from the original June 16, 2025 maturity.

The refinanced CLO has a 2.5-year non-call period and a five-year reinvestment period.

In the original $519.4 million transaction that closed on June 25, 2013, the CLO sold $311.5 million of the class A-1 senior secured floating-rate notes at Libor plus 115 bps.

Proceeds from the refinancing were used to redeem the original notes.

The deal is collateralized primarily by broadly syndicated senior secured corporate loans.

KKR priced three new U.S. CLOs and refinanced one vintage U.S. CLO transaction in 2016.

The investment firm is a subsidiary of KKR Credit Advisors (US) LLC.

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