Octagon reprices CLO; secondary high-grade CBO/CDO/CLO supply rises, paper trades flat

By Cristal Cody

Tupelo, Miss., Sept. 30 – In new refinancing activity, Octagon Credit Investors, LLC repriced a tranche of fixed-rate notes from a 2017 broadly syndicated CLO offering.

More than $28 billion of vintage CLOs have been refinanced, while about $55 billion of new CLOs have priced year to date, according to market sources.

Elsewhere, secondary high-grade CBO/CDO/CLO supply climbed to $471.1 million on Tuesday from $322.37 million of issues traded on Monday, according to Trace.

Investment-grade CBO/CDO/CLO notes were flat at an average price of 98.10 over the session.

Further down the capital structure, $113.68 million of lower-rated CBO/CDO/CLO issues were traded in the prior session, up from $76.72 million at the start of the week.

Non-high-grade paper softened to an average price of 88.40 on Tuesday from 92.70 during Monday’s session.

Octagon refinances

Octagon Credit Investors priced $13.2 million of notes in a partial refinancing of the Octagon Investment Partners 31, Ltd./Octagon Investment Partners 31, LLC transaction, according to market sources.

The CLO sold $13.2 million of 2.025% class B-2R senior secured fixed-rate notes due July 20, 2030.

In the original offering issued June 29, 2017, the CLO had priced $13.2 million of 3.729% class B-2 senior secured fixed-rate notes.

Citigroup Global Markets Inc. was the refinancing agent.

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

Octagon Credit Investors is a New York-based credit investment firm that is majority owned by Conning & Co.

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