St. Paul’s CLO II might redeem six classes of notes via refinancing

By Angela McDaniels

Tacoma, Wash., July 1 – St. Paul’s CLO II DAC might redeem its rated floating-rate notes due 2030, according to a notice of potential redemption.

Certain subordinated noteholders have contacted the investment manager to assess options available that may lead to an optional redemption of the rated notes via a refinancing.

In the CLO, the company issued €241.5 million class A secured notes, €40 million class B secured notes, €28.5 million class C secured deferrable notes, €21.5 million class D secured deferrable notes, €25 million class E secured deferrable notes, €11 million class F secured deferrable notes and €62 million subordinated notes.

If the proposed redemption is to proceed, the transaction documents may be subject to certain amendments. These amendments may include the following:

• Issuing new classes of senior and mezzanine rated notes that will be senior to the subordinated notes;

• Extending the non-call period, the reinvestment period and the maturity date applicable to the new rated notes and the subordinated notes;

• Amending the provisions of the conditions relating to the terms and conditions of any future optional redemption;

• Amending certain collateral quality tests and percentage limitations;

• Amending certain provisions of the priorities of payments; and

• Amending certain other commercial terms of the transaction.

Intermediate Capital Managers Ltd., a London-based investment management firm, is the investment manager.

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