Kramer Van Kirk refinances fourth CLO; CVC, Allianz refinance; Ares, CSAM refinance euro CLOs

By Cristal Cody

Tupelo, Miss., April 13 – CLO refinancing action remains strong year to date in the U.S. and European primary markets.

In the U.S. market, Kramer Van Kirk Credit Strategies LP returned to refinance its fourth vintage CLO in 2017.

Also, CLO managers including CVC Credit Partners, LLC, Western Asset Management Co. Ltd. and Allianz Global Investors, LLC refinanced notes from vintage 2014 CLO deals.

In the European market, Ares European Loan Management LLP and Credit Suisse Asset Management Ltd. refinanced vintage 2013 CLO notes.

About $60 billion of U.S. CLOs and about €7 billion of European CLOs have been refinanced year to date, according to market sources.

Kramer Van Kirk refinances

Kramer Van Kirk Credit Strategies refinanced $495.5 million of notes due July 15, 2026 in three tranches from the KVK CLO 2014-2 Ltd./KVK CLO 2014-2 LLC transaction, according to a market source.

The CLO sold $378 million of class A-R floating-rate notes at par to yield Libor plus 118 basis points in the senior tranche.

Credit Suisse Securities (USA) LLC was the refinancing agent.

Kramer Van Kirk credit Strategies has refinanced four vintage CLOs year to date.

The Chicago-based CLO manager priced one new CLO deal in 2016.

CVC prices at par

CVC Credit Partners refinanced $618.15 million of notes due July 22, 2026 at par in a vintage 2014 CLO transaction, according to a market source.

Apidos CLO XVIII/Apidos CLO XVIII LLC priced $449.8 million of class A-1-R floating-rate notes at Libor plus 112 bps at the top of the capital structure.

Morgan Stanley & Co. LLC arranged the transaction.

CVC Credit Partners has refinanced three vintage CLOs year to date.

The New York-based subsidiary of London-based CVC Capital Partners Ltd. priced two new CLOs and refinanced two CLOs in 2016.

Western Asset refinances

Western Asset Management refinanced $415.5 million of floating-rate notes due April 18, 2025 at par in two tranches from the Mountain Hawk III CLO Ltd. transaction, according to a market source.

The CLO sold $346.25 million of class A-R floating-rate notes at par to yield Libor plus 120 bps in the AAA-rated tranche.

Citigroup Global Markets Inc. was the refinancing agent.

Western Asset Management is a fixed income investment firm based in Pasadena, Calif.

Allianz refinances CLO

Allianz Global Investors priced $391.3 million of notes due Oct. 20, 2026 in a refinancing of four tranches from the Sound Harbor Loan Fund 2014-1 Ltd. CLO offering, a market source said.

Sound Harbor Loan Fund sold $281.2 million of class A-1-R floating-rate notes at Libor plus 120 bps at the top of the capital stack.

J.P. Morgan Securities LLC arranged the offering.

Sound Harbor Partners originally priced the CLO in September 2014. Allianz announced in December that it would acquire Sound Harbor Partners in a transaction that closed in the first quarter of 2017.

Allianz Global Investors is an investment management firm with offices in the United States, Europe and Asia Pacific.

Ares resets CLO

Ares European Loan Management sold €316.5 million of notes in a refinancing and reset of the Ares European CLO VI BV deal, according to a market source.

Ares European CLO VI priced €208.15 million of class A-R senior secured floating-rate notes at par to yield Euribor plus 85 bps in the senior slice.

Barclays arranged the deal.

The maturity on the refinanced notes was extended to April 15, 2030 from the original Oct. 15, 2025 due date.

Ares priced one euro-denominated CLO in 2016.

The asset management firm is based in London.

CSAM refinances

Credit Suisse Asset Management priced €276.6 million of notes due Jan. 15, 2030 in a refinancing and reset of the Cadogan Square CLO V BV offering, according to a market source.

Cadogan Square CLO V sold €181.3 million of floating-rate notes at par to yield Euribor plus 87 bps in the class A-R tranche.

Morgan Stanley & Co. LLC arranged the transaction.

The maturity on the refinanced notes was extended to May 15, 2031 from the original Aug. 14, 2025 maturity.

Credit Suisse Asset Management is a subsidiary of Zurich-based Credit Suisse AG.

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