CLO refinancings steady in October; Apollo reprices second time; ArrowMark resets CLO

By Cristal Cody

Tupelo, Miss., Oct. 16 – CLO refinancing action continues to remain strong in October with nearly 20 vintage deals already refinanced month to date, sources report.

Details emerged on two refinancings that closed on Monday.

Apollo Credit Management (CLO) LLC priced $831 million of notes in a second refinancing of a vintage 2013 CLO.

ArrowMark Colorado Holdings LLC sold $326.1 million of notes in a refinancing and reset of a 2016 offering.

Year to date, about $130 billion of vintage CLOs have been refinanced, according to a BofA Merrill Lynch research report.

Apollo prices $831 million

Apollo Credit Management closed Monday on an $831 million offering of notes due Oct. 15, 2027 in a second refinancing of a vintage 2013 CLO deal, according to a market source and a notice of executed second supplemental indenture.

ALM VII(R)-2, Ltd./ALM VII(R)-2, LLC sold $535 million of class A-1A-2 senior secured floating-rate notes at Libor plus 105 basis points at the top of the capital stack.

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

ALM VII(R)-2 CLO was originally issued on Sept. 12, 2013.

In the first refinancing issued on Dec. 2, 2016, the CLO sold $408.7 million of notes. The CLO brought the $260 million of class A-1-R senior secured floating-rate notes at Libor plus 141 bps.

Proceeds will be used to redeem the first refinanced notes.

The subsidiary of Apollo Global Management, LLC is based in New York City.

ArrowMark reprices

ArrowMark Colorado Holdings sold $326.1 million of notes in a refinancing and reset of the Elevation CLO 2016-5, Ltd./Elevation CLO 2016-5, LLC deal, according to a market source and a notice of executed second supplemental indenture.

In the AAA-rated tranche, Elevation CLO 2016-5 priced $224 million of class A-R senior secured floating-rate notes at Libor plus 123 bps.

Goldman Sachs & Co. LLC was the refinancing placement agent.

The maturity on the notes was extended by three years to Oct. 27, 2031.

The original CLO, then named Arrowpoint CLO 2016-5 Ltd./Arrowpoint CLO 2016-5 LLC, was issued June 28, 2016.

In that offering, the CLO had priced $224 million of class A floating-rate notes at Libor plus 172 bps.

Proceeds will be used to redeem the original notes.

ArrowMark Colorado Holdings is an investment management firm based in Denver.

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