Octagon reprices $32.5 million notes; CLO supply light; pandemic weighs on market

By Cristal Cody

Tupelo, Miss., Sept. 1 – In CLO pricing activity, Octagon Credit Investors, LLC refinanced $32.5 million of fixed-rate notes from a 2018 broadly syndicated CLO offering.

Octagon Credit Investors refinanced $32.5 million of notes from the vintage 2018 Octagon Investment Partners 38, Ltd./Octagon Investment Partners 38, LLC deal, according to market sources.

The CLO sold $32.5 million of class A-3BR fixed-rate notes due July 20, 2030 with a 2.39% coupon.

Meanwhile, Credit Suisse Asset Management, LLC closed Tuesday on its previously reported $596.2 million Madison Park Funding XLVI Ltd./Madison Park Funding XLVI LLC offering, which priced the $360 million of class A floating-rate notes at Libor plus 160 basis points.

Also, Five Arrows Managers LLP closed Tuesday on its €297.35 million Contego CLO VIII DAC deal. The CLO priced €175.5 million of the class A floating-rate notes at Euribor plus 145 bps.

CLO volume is expected to be light until after the Labor Day holiday.

Year to date, about $48 billion of dollar-denominated broadly syndicated CLOs and over €13 billion of euro-denominated CLOs have priced, while about $26 billion of vintage CLOs have been refinanced.

The Covid-19 pandemic weighted on the market in the second quarter, according to a DBRS Morningstar second-quarter CLO report on Monday.

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