Oaktree Capital prices $459.5 million CLO refinancing; secondary trading activity thins

By Cristal Cody

Tupelo, Miss., Dec. 6 – Oaktree Capital Management LP refinanced its third vintage CLO deal of the year.

The CLO manager priced $459.5 million of notes in the transaction.

More than $145 billion of vintage 2013, 2014 and 2015 CLOs have been refinanced year to date, according to market sources and Prospect News data.

In other activity, secondary trading volume continues to remain mostly light.

Not enough investment-grade CBO/CDO/CLO issues have traded to register in the secondary market on Monday and Tuesday, according to Trace.

Lower-rated securities were more active in the previous session with $85.14 billion of non-investment-grade CBO/CDO/CLO issues traded on Tuesday. The non-high-grade securitized secondary market did not see enough volume on Monday, Trace reported.

In its deal, Oaktree Capital Management priced $459.5 million of notes due Oct. 20, 2027 in a refinancing of the Oaktree CLO 2015-1 Ltd./Oaktree CLO 2015-1 LLC transaction, according to a market source and a notice of withdrawal of updated notice of refinancing and updated notice of refinancing and revised supplemental indenture on Tuesday.

Oaktree CLO 2015-1 sold $310 million of class A-1-R senior secured floating-rate notes at Libor plus 87 basis points in the senior tranche.

Morgan Stanley & Co. LLC arranged the transaction.

The non-call period on the refinanced CLO was extended to 2018.

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