AB Private Credit to reissue middle-market CLO; broadly syndicated CLOs stable

By Cristal Cody

Tupelo, Miss., May 3 – AB Private Credit Investors LLC plans to price new notes in a reissue of a vintage 2016 middle-market CLO transaction.

AB Private Credit Investors plans to refinance notes from the vintage 2016 ABPCI Direct Lending Fund CLO Ltd./ABPCI Direct Lending Fund CLO LLC offering, according to a notice of proposed second supplemental indenture.

The Rule 144A and Regulation S deal includes class A-1 senior secured floating-rate notes (/AAA expected/), class A-2A senior secured floating-rate notes (/AA expected/), class A-2B senior secured fixed-rate notes (/AA expected/), class B secured deferrable floating-rate notes (/A expected/), class C secured deferrable floating-rate notes (/BBB- expected/) and subordinated notes.

Meanwhile in the broadly syndicated CLO market, stable portfolio spreads and weak exposure, among other factors, supported an improvement in many portfolio metrics in the first quarter, Fitch Ratings said in a report on Friday.

“The average reported weighted average spread was 3.47% at the end of March, relatively unchanged from fourth-quarter 2018,” Fitch said of broadly syndicated CLOs under its surveillance in the first quarter.

“Average trigger levels were lower at the end of the quarter, resulting in fewer CLOs tripping the covenant,” according to the report. “The weighted average life failures were also down, and portfolio gains were logged.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.