Wellfleet sells $557 million CLO; KKR refinances euro notes; reset, new issue action strong

By Cristal Cody

Tupelo, Miss., Aug. 31 – Details emerged about new CLO issuance in the U.S. primary market and a new euro-denominated refinancing.

Wellfleet Credit Partners, LLC priced $557 million of notes in the CLO manager’s second new transaction of the year.

In refinancing action, KKR Credit Advisors (Ireland) Unlimited Co. sold €419.5 million of notes in a reset of a 2014 vintage CLO. KKR has refinanced two European CLOs year to date.

“As refinancing volume continues to fall from its April peak, reset and new issuance activity is now dominating the market,” Moody’s Investors Service said in it its August CLO report released on Thursday.

In the U.S. market, about $62 billion of new CLOs have priced year to date, while more than $117 billion of vintage deals have been refinanced or reset with extended maturities or other structure changes in 2017, according to market sources.

More than €17 billion of euro-denominated CLOs have been refinanced or reset year to date. New issue volume totals about €10 billion.

Wellfleet brings 2017-2

Wellfleet Credit Partners priced $557 million of notes due Oct. 20, 2029 in the new CLO deal, according to market sources.

Wellfleet CLO 2017-2, Ltd./Wellfleet CLO 2017-2 LLC sold $354.75 million of class A-1 floating-rate notes at Libor plus 125 basis points at the top of the capital structure.

Citigroup Global Markets Inc. arranged the offering.

Wellfleet Credit Partners has priced two CLOs year to date. The firm priced two CLOs in 2016.

The Greenwich, Conn.-based performing credit arm was created in 2015 by private investment firm Littlejohn & Co., LLC.

KKR refinances Avoca XIII

KKR Credit Advisors (Ireland) refinanced €419.5 million of notes in a reset of the 2014 vintage Avoca CLO XIII Ltd. deal, according to a market source and a prospectus on Wednesday.

The CLO priced €240 million of class A-R senior secured floating-rate notes at Euribor plus 90 bps in the senior tranche.

Goldman Sachs International was the refinancing agent.

KKR Credit Advisors (Ireland), formerly known as Avoca Capital Holdings, is the CLO manager.

The maturity on the refinanced notes was extended to Oct. 15, 2030 from the original Dec. 29, 2027 maturity.

In the original €414 million transaction priced on Nov. 21, 2014, the CLO sold €5 million of 1.66% class A-1 senior secured fixed-rate notes and €235 million of class A-2 senior secured floating-rate notes at Euribor plus 125 bps.

KKR Credit Advisors (Ireland) has refinanced two vintage CLOs year to date.

The Dublin-based credit investment management firm priced one new CLO and refinanced one CLO deal in 2016.

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