Park Avenue refinances CLO; DFG eyes third deal of year; high-grade secondary thin

By Cristal Cody

Tupelo, Miss., Aug. 24 – CLO refinancing action remains steady in August and includes a reset of a vintage 2016 deal from Park Avenue Institutional Advisers LLC.

Park Avenue Institutional Advisers priced $365.7 million of notes in the reprint of the manager’s first broadly syndicated CLO transaction.

Looking at the new issue market, DFG Investment Advisors, Inc. plans to price $510.5 million of notes in the CLO manager’s third deal of the year.

Elsewhere, the securitized secondary market has been active in mainly non-high-grade CBO/CDO/CLO securities over the week, according to Trace data.

On Thursday, $218.95 million of the issues were traded, up from $166.39 million on Wednesday, $159.35 million on Tuesday and $41.12 million on Monday.

Secondary market volume in high-grade CBO/CDO/CLO securities was thin over the week. On Thursday, $50.98 million of investment-grade securities traded, compared to $76.57 million on Wednesday, $41.11 million on Tuesday and $44.12 million on Monday.

Park Avenue prices

Park Avenue Institutional Advisers priced $365.7 million of notes in a refinancing and reset of the Park Avenue Institutional Advisers CLO Ltd. 2016-1/Park Avenue Institutional Advisers CLO LLC 2016-1 deal, according to a market source.

Park Avenue Institutional Advisers CLO 2016-1 sold $250 million of class A-1-R senior secured floating-rate notes at Libor plus 120 basis points in the senior tranche.

J.P. Morgan Securities LLC was the refinancing placement agent.

The maturity on the reset notes was extended to August 2031 from the Aug. 23, 2028 original maturity.

In the original $405.95 million transaction that was issued Aug. 23, 2016, the CLO sold $250.5 million of the class A-1 floating-rate notes at Libor plus 170 bps.

Proceeds were used to redeem the original notes.

The CLO is collateralized mainly by broadly syndicated senior secured loans.

Park Avenue Institutional Advisers is a New York-based investment management firm and subsidiary of Guardian Life Insurance Co. of America.

DFG markets CLO

DFG Investment Advisors, Inc. plans to price $510.5 million of notes due Oct. 20, 2031 in a new CLO deal via Morgan Stanley & Co. LLC, according to a market source.

The Vibrant CLO X Ltd./Vibrant CLO X LLC offering includes $320 million of class A-1 senior secured floating-rate notes (Aaa); $57.5 million of class A-2 senior secured floating-rate notes (Aa2); $27.5 million of class B secured deferrable floating-rate notes (A2); $30 million class C secured deferrable floating-rate notes (Baa3); $25 million of class D secured deferrable floating-rate notes (Ba3) and $50.5 million of subordinated notes.

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

DFG Investment Advisors has priced two CLOs year to date.

The asset management firm is based in New York.

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