Shenkman refinances $406.26 million CLO; Madison Capital taps middle market; secondary busy

By Cristal Cody

Tupelo, Miss., March 10 – Details emerged on a new refinanced CLO transaction and a new middle-market deal.

Shenkman Capital Management, Inc. refinanced $406.25 million of notes in a vintage 2014 broadly syndicated CLO.

More than $29 billion of U.S. CLOs have been refinanced year to date, according to market sources.

In the middle-market space, Madison Capital Funding LLC priced a $302.85 million deal in its first offering of the year.

CLO middle-market volume totals about $2 billion year to date.

The secondary market remained active on Thursday with $239.07 million of high-grade CBO/CDO/CLO issues and $336.9 million of non-investment-grade securities traded, according to Trace.

During Wednesday's session, high-grade trading volume totaled $1.1 billion, while $167.99 million of non-investment-grade securities were traded.

Shenkman refinances CLO

Shenkman Capital Management refinanced $406.25 million of notes due April 20, 2026 at par in the Washington Mill CLO Ltd./Washington Mill CLO LLC, according to a market source.

Washington Mill CLO priced $295 million of class A-1R floating-rate notes at Libor plus 122 basis points and $18.75 million of 2.9% class A-2R fixed-rate notes in the senior tranches.

Citigroup Global Markets Inc. arranged the offering.

Shenkman Capital Management is a New York-based investment firm.

Madison Capital taps market

Madison Capital Funding priced a $302.85 million middle-market CLO deal in its first offering of the year, according to a market source.

MCF CLO V LLC sold $173.5 million of class A floating-rate notes at Libor plus 190 bps in the senior tranche.

The notes are April 20, 2029.

Wells Fargo Securities LLC arranged the offering that closed on Thursday.

Madison Capital Funding is the CLO manager.

The CLO is backed primarily by senior secured loans and has a two-year non-call period and a four-year reinvestment period.

Proceeds from the offering will be used to purchase a portfolio of about $300 million of mostly senior secured middle-market loans.

Madison Capital Funding is a Chicago-based middle-market finance company and subsidiary of New York Life Insurance Co.

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