Sound Point prices €421.1 million CLO; Mariner plans refinancing; primary spreads firm

By Cristal Cody

Tupelo, Miss., Feb. 5 – Euro-denominated supply continued with a €421.1 million broadly syndicated CLO from Sound Point Capital Management LP.

At the start of the week, GLG Partners LP priced the €352.78 million Man GLG Euro CLO VI DAC transaction.

The euro-denominated market has been active with other CLOs priced at the end of January from Investcorp Credit Management EU Ltd., Partners Group (UK) Management Ltd. and Accunia Fondsmaeglerselskab A/S totaling more than €1 billion.

Meanwhile, the refinancing space also remains active in early 2020.

Mariner Investment Group, LLC plans to price a second refinancing of a vintage 2016 broadly syndicated CLO.

More than $4 billion of CLOs have priced year to date, while nearly $1 billion of vintage CLOs have been refinanced, reset or reissued, according to a Wells Fargo Securities research note.

“The pace of refis/resets/reissues is down [month over month], but we expect it to pick up in February given tightening spreads,” Wells Fargo analysts said in the note.

New issue AAA-rated spreads improved an average 7 basis points in January to Libor plus 126 bps, the analysts said.

Primary BBB spreads tightened 40 bps month over month to Libor plus 310 bps.

Refinanced AAA spreads are an average 2 bps tighter from a month ago at Libor plus 99 bps.

Further down the stack, CLO refinancing spreads have firmed an average 10 bps to 30 bps from a month ago, according to the report.

BBB refinanced notes priced an average 25 bps tighter at Libor plus 310 bps.

Euro-denominated new issue spreads also have firmed about 3 bps to 115 bps over the month, according to the Wells Fargo report.

Euro AAAs have improved 3 bps on average to Euribor plus 95 bps, while BB tranches have come in 100 bps to the Euribor plus 575 bps average.

Sound Point prices

Sound Point CLO C-MOA priced €421.1 million of notes due April 15, 2033 in the transaction, according to market sources.

Sound Point Euro CLO III Funding DAC sold €248 million of class A floating-rate notes at Euribor plus 95 bps at the top of the capital structure.

Morgan Stanley & Co. International plc was the placement agent.

The notes are collateralized primarily by broadly syndicated senior secured corporate loans and bonds.

Sound Point Capital priced two new euro-denominated CLOs in 2019.

The asset management firm is based in New York.

Mariner to refinance 2016-3

Mariner Investment Group plans to price a second refinancing of the Mariner CLO 2016-3 Ltd./Mariner CLO 2016-3 LLC deal, according to a notice of proposed supplemental indenture on Tuesday.

The reprint includes class A-R2 floating-rate notes (expected rating: AAA), class B-R2 floating-rate notes (expected rating: AA), class C-R2 deferrable floating-rate notes (expected rating: A), class D-R2 deferrable floating-rate notes (expected rating: BBB) and class E-R2 deferrable floating-rate notes (expected rating: BB).

Citigroup Global Markets Inc. is the refinancing agent.

The notes are due July 23, 2029.

Mariner originally issued the $503.4 million CLO on Aug. 11, 2016 and first refinanced the notes on July 24, 2017.

The alternative asset management firm is based in New York City.

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