THL prices new deal, refinances CLO; Voya brings $608 million CLO; secondary volume light

By Cristal Cody

Eureka Springs, Oct. 5 – In the new issue CLO primary market, THL Credit Advisors LLC and Voya Alternative Asset Management LLC priced deals, while THL Credit Advisors and Canyon CLO Advisors LLC also refinanced vintage CLOs.

THL Credit Advisors priced a $655.5 million U.S. risk retention-compliant CLO offering and sold $514.33 million in a reset of a vintage 2012 CLO.

Voya Alternative Asset Management tapped the CLO primary market with a $608 million deal, the firm’s third new CLO of the year.

Canyon CLO Advisors refinanced $302.5 million of notes in a vintage CLO.

Secondary trading volume in the securitized market has been light during the first part of the week.

On Tuesday, $51.53 million traded in 25 high-grade CBO/CDO/CLO issues and $74.9 million traded in 24 non-investment-grade CBO/CDO/CLO securities, according to the latest data from Trace.

Monday’s session saw five high-grade CBO/CDO/CLO issues totaling $35.6 million and 10 non-investment-grade CBO/CDO/CLO securities totaling $86.55 million traded.

THL sells $655.5 million CLO

THL Credit Advisors priced $655.5 million of notes due Oct. 27, 2028 in the THL Credit Wind River 2016-2 CLO Ltd./THL Credit Wind River 2016-2 LLC transaction, according to a market source.

The CLO sold $416 million of class A senior secured floating-rate notes at Libor plus 150 basis points in the AAA-rated tranche.

Morgan Stanley & Co. LLC was the placement agent.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

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

The transaction does not permit the purchase of bonds, notes or letters of credit, and the manager is expected to retain 5% of the outstanding amount of each class of notes to comply with the Volcker Rule and U.S. risk retention regulations. The deal is not expected to be compliant with European risk retention regulations.

THL Credit Advisors has priced two new CLO deals and refinanced one vintage CLO transaction year to date.

The CLO manager priced two CLO transactions in 2015.

Boston-based THL Credit Advisors is an alternative credit investment firm.

THL refinances CLO

THL Credit Advisors also priced $514.33 million of notes due Jan. 15, 2026 in a reset of the THL Credit Wind River 2012-1 CLO Ltd./THL Credit Wind River 2012-1 LLC transaction, according to a market source.

THL Credit Wind River 2012-1 CLO sold $316.3 million of class A-R floating-rate notes (Aaa expected/AAA/) at Libor plus 145 bps at the top of the capital structure.

MUFG was the refinancing agent.

The maturity on the original notes due Jan. 15, 2024 was extended on the refinanced tranches.

Proceeds from the refinancing transaction will be used to redeem the original notes on Oct. 17.

The alternative credit investment firm is based in Boston.

Voya prices $608 million

Voya Alternative Asset Management priced $608 million of notes due Oct. 18, 2028 in the Voya CLO 2016-3, Ltd./Voya CLO 2016-3 LLC offering, according to a market source.

Voya CLO 2016-3 sold $372 million of class A-1 senior secured floating-rate notes at Libor plus 143 bps in the senior tranche.

Credit Suisse Securities (USA) LLC was the placement agent.

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

Voya Alternative Asset Management has priced three new CLOs and refinanced one vintage transaction year to date.

The affiliate of New York City-based Voya Investment Management LLC priced three CLOs and refinanced two vintage CLO deals in 2015.

Canyon Capital refinances

Canyon CLO Advisors sold $302.5 million of notes due Jan. 15, 2026 in a refinancing of a vintage CLO offering, according to a market source.

Canyon Capital CLO 2012-1, Ltd./Canyon Capital CLO 2016-2, LLC placed $213.75 million of class A-R floating-rate notes at Libor plus 143 bps in the senior slice.

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

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

Canyon CLO Advisors has priced two CLO deals and refinanced one vintage CLO offering year to date.

The Los Angeles-based firm is a subsidiary of alternative asset manager Canyon Capital Advisors LLC.

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