Refinancing action in focus; PineBridge reprices; Ivy Hill, Fortress reset CLOs

By Cristal Cody

Tupelo, Miss., July 17 – Refinancing activity in the CLO market is heating up in July.

PineBridge Investments LLC priced $393.4 million of notes in a refinancing of a vintage 2016 broadly syndicated CLO.

In the middle-market space, Ivy Hill Asset Management, LP priced $392.9 million of notes in a refinancing and reset of a vintage 2015 deal.

Fortress Investment Group LLC also reset $379.3 million of notes from a vintage 2015 middle-market CLO.

U.S. middle-market CLOs are seeing an increase in quarterly distributions, but also year-over-year gains, Wells Fargo Securities LLC analysts said in a note on Tuesday.

“This is likely due to MM CLOs seeing less compression in excess spread over the past few years due to less refi activity in middle-market loans,” the analysts said.

PineBridge refinances

PineBridge Investments priced $393.4 million of notes due July 15, 2028 in the refinancing of a vintage 2016 CLO offering, according to a market source and a notice of executed supplement indenture on Tuesday.

Galaxy XXII CLO Ltd./Galaxy XXII CLO LLC sold $240.1 million of the class A-1-R senior floating-rate notes at Libor plus 100 basis points.

Goldman Sachs & Co. LLC was the refinancing placement agent.

In the original $400 million transaction that was issued July 14, 2016, the CLO sold $223 million of class A-1 floating-rate notes at Libor plus 158 bps.

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

PineBridge Investments is an asset management firm based in New York City.

Fortress resets CLO

Fortress Investment Group sold $379.3 million of notes in the refinancing and reset of a vintage 2015 middle-market CLO transaction, according to a market source and a notice of executed supplemental indenture on Monday.

Fortress Credit Opportunities VI CLO Ltd./Fortress Credit Opportunities VI CLO LLC priced $57.4 million of class A-1-R-R senior secured revolving floating-rate notes at Libor plus 136 bps, plus a commitment fee on the aggregate undrawn amount, as well as $87.5 million of class A-1-T-R senior secured floating-rate notes at Libor plus 136 bps, $30 million of class A-1-L senior secured floating-rate loans at Libor plus 136 bps and $190 million of class A-2-R senior secured floating-rate notes at Libor plus 160 bps in the senior tranches.

Natixis Securities America LLC was the refinancing placement agent.

The CLO manager is FCOO CLO Management LLC.

The maturity on the notes was extended to July 10, 2030 from the original March 31, 2027 maturity.

The original $350 million deal was issued March 31, 2015.

The deal is backed primarily by middle-market small and medium enterprise loans.

Fortress Investment is a New York City-based investment firm.

Ivy Hill reprices CLO

Ivy Hill Asset Management priced $392.9 million of notes in the refinancing and reset of a vintage 2015 middle-market CLO transaction, according to a market source and a notice of changed pages to proposed amended and restated indenture on Monday.

Ivy Hill Middle Market Credit Fund X, Ltd. sold $221.4 million of class A-1a-R senior floating-rate notes at Libor plus 125 bps at the top of the capital structure.

Natixis Securities Americas LLC was the refinancing placement agent.

The maturity on the notes, originally due July 24, 2027, will be extended to July 18, 2030.

The CLO was originally issued in a $384.65 million transaction on July 24, 2015.

The deal is backed by senior secured loans to middle market obligors.

Ivy Hill is a New York-based subsidiary of Ares Capital Corp.

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