Fair Oaks prices €332.6 million CLO; Carlyle refinances notes; DoubleLine on deck

By Cristal Cody

Tupelo, Miss., July 16 – In CLO market activity on Tuesday, Fair Oaks Capital Ltd. closed on a new €332.6 million CLO deal.

In the dollar-denominated market, Carlyle CLO Management LLC priced a $453.08 million second refinancing of notes from a vintage 2015 CLO deal on Friday.

Meanwhile, DoubleLine Capital LP expects to price $406.25 million of notes in the manager’s first CLO offering of the year.

Nearly €17 billion of euro-denominated CLOs and about $56 billion of dollar-denominated broadly syndicated CLOs have priced year to date, according to market sources.

CLO refinancing volume totals more than $25 billion so far this year.

Fair Oaks wraps euro CLO

Fair Oaks Capital closed Tuesday on a new €332.6 million CLO offering of notes due July 15, 2030, according to a market source.

The Fair Oaks Loan Funding I DAC offering priced €133.32 million of class A-1 senior secured floating-rate notes at par to yield Euribor plus 96 basis points and €68.18 million of class A-2 senior secured floating-rate notes at par to yield Euribor plus 98 bps at the top of the capital stack.

Deutsche Bank Securities Inc. was the placement agent.

The deal is backed primarily by broadly syndicated senior secured obligations.

The securities were admitted for trading Tuesday on the Euronext Dublin Global Exchange Market.

Fair Oaks Capital is a London-based alternative asset manager.

Carlyle refinances CLO

In new refinancing activity, Carlyle CLO Management priced a $453.08 million second refinancing of notes from the Carlyle Global Market Strategies CLO 2015-1, Ltd./Carlyle Global Market Strategies CLO 2015-1 LLC deal, according to a market source and a notice of revised form of proposed second supplemental indenture on Monday.

The Carlyle Global Market Strategies CLO 2015-1 transaction included class A-R2 senior secured floating-rate notes, class B-R2 senior secured floating-rate notes, class C-R2 mezzanine secured floating-rate notes, class D-R2 mezzanine secured floating-rate notes, class E-R junior secured floating-rate notes and class F-R junior secured floating-rate notes.

Morgan Stanley & Co. LLC was the refinancing agent.

The original $669.5 million offering was issued March 10, 2015, and the CLO was partially refinanced on July 20, 2017.

Proceeds will be used to redeem the outstanding notes on July 22.

The asset management firm is an affiliate of Washington, D.C.-based Carlyle Group.

DoubleLine plans deal

In new deal activity, DoubleLine Capital is offering $406.25 million of notes due July 20, 2032 in the Parallel 2019-1 Ltd./Parallel 2019-1 LLC transaction, according to a market source and a S&P Global Ratings news release on Tuesday.

The offering includes $3 million of class X floating-rate notes (AAA); $244 million of class A-1 floating-rate notes (AAA); $16 million of class A-2 floating-rate notes (/non-rated/); $42 million of class B floating-rate notes (AA); $26 million of class C deferrable floating-rate notes (A); $20 million of class D deferrable floating-rate notes (BBB-), $17 million of class E deferrable floating-rate notes (BB-) and $38.25 million of subordinated notes.

Morgan Stanley is the placement agent.

The CLO is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.

The transaction is expected to close Aug. 29.

The investment management firm is based in Los Angeles.

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