Apex sells $408.35 million CLO; GSO/Blackstone, Sound Point Capital refinance notes

By Cristal Cody

Tupelo, Miss., Oct. 2 – Apex Credit Partners LLC priced $408.35 million of notes in the manager’s second new CLO transaction of the year.

The refinancing space also remains active with two CLO managers tightening spreads on the AAA-rated tranche in vintage deals.

GSO/Blackstone Debt Funds Management LLC repriced $352 million of class A notes from a 2016 CLO.

Sound Point Capital Management LP also refinanced $416 million of class A notes from a vintage 2017 CLO.

CLO managers have priced about $85 billion of new deals and refinanced about $35 billion of vintage CLOs year to date, market sources report.

Apex prices 2019-II CLO

Apex Credit Partners sold $408.35 million of notes due Oct. 25, 2032 in the Apex Credit CLO 2019-II Ltd. transaction, according to market sources.

The CLO sold $248 million of class A-1 senior secured floating-rate notes (Aaa/AAA) at Libor plus 141 basis points and $16 million of class A-2 senior secured floating-rate notes (AAA) at Libor plus 180 bps at the top of the capital stack.

Jefferies LLC was the placement agent.

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

Apex has priced two CLO offerings year to date.

The New York City-based commercial finance firm is co-owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

GSO/Blackstone refinances

GSO/Blackstone Debt Funds Management refinanced $352 million of class A notes due Oct. 20, 2029 (expected Aaa//AAA) from the 2016 vintage Burnham Park CLO Ltd./Burnham Park CLO LLC transaction, according to a market source.

Burnham Park CLO priced the class A-R senior secured floating-rate notes at par to yield Libor plus 115 bps.

Citigroup Global Markets Inc. was the refinancing placement agent.

GSO/Blackstone originally issued the CLO on Oct. 26, 2016 and refinanced all of the tranches except the AAA-rated tranche on Nov. 28, 2018.

In the original offering issued Oct. 26, 2016, the CLO priced $352 million of class A floating-rate notes at Libor plus 143 bps.

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

New York City-based GSO/Blackstone is a subsidiary of alternative asset manager GSO Capital Partners LP.

Sound Point reprices

Sound Point Capital Management refinanced $416 million of class A notes due Jan. 23, 2029 from the vintage 2017 Sound Point CLO XV, Ltd. transaction, according to a market source.

The CLO sold the class A-R senior secured floating-rate notes (Aaa//AAA) at par to yield Libor plus 115 bps.

MUFG was the refinancing placement agent for the tranche.

In the original $664.3 million transaction issued March 9, 2017, the CLO sold $416 million of class A senior secured floating-rate notes at Libor plus 139 bps.

The transaction is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.

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