THL prices upsized $612 million 2017-1 CLO; PGIM, CELF refinance euro CLOs; secondary thins

By Cristal Cody

Tupelo, Miss., Feb. 6 – New CLO deal action is beginning to pick up after a slow start to 2017 while the refinancing pace remains steady in the U.S. and European markets.

THL Credit Advisors LLC priced an upsized $612 million of notes in the new THL Credit Wind River 2017-1 CLO Ltd./THL Credit Wind River 2017-1 LLC transaction, according to a market source.

The CLO sold $390 million of class A senior secured floating-rate notes at Libor plus 134 bps in the senior tranche.

Crescent Capital Group LP refinanced $478.5 million of notes in a U.S. CLO.

In the European market, CELF Advisors LLP priced €373.2 million of notes in a refinancing and reset of a vintage 2013 deal.

PGIM, Inc. refinanced €280.25 million of notes from a vintage 2014 CLO.

Secondary market action slowed over the past week with $400 million of bonds up for bid, compared to more than $1 billion on BWIC lists for each of the previous two weeks, according to a BofA Merrill Lynch note.

“With limited new supply in the primary market, the demand for secondary paper remained robust,” the analysts said in the report. “The top of the capital stack was particularly well bid, with 2.0 AAA to single-A spreads tightening by 5 [basis points] and BBB spreads tightening by 10 [bps week over week].”

CLO 2.0 AAA spreads were quoted better at Libor plus 120 bps in secondary trading.

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