Och-Ziff Europe refinances for €359 million; TICP CLO XIV prices $402.35 million notes

Chicago, Sept. 4 – On Wednesday the collateralized loan obligation market saw one refinancing price and one new portfolio price, similar to Tuesday.

Och-Ziff Europe Loan Management Ltd. refinanced five classes of notes for €359 million from a vintage December 2016 CLO.

And, TPG Sixth Street Partners, a firm that currently manages 12 CLOs, priced a new portfolio for $402.35 million.

After a quiet day back following a long Labor Day weekend in the United States, secondary volume picked up substantially on Wednesday.

In the investment-grade CBO/CDO/CLO market, $241.86 million traded hands at an average price of 99. Only $22.12 million was bought and sold on Tuesday, according to Trace data.

And, $32.22 million traded in the non-investment grade sector. The average price was 74.4. No notes were traded on Tuesday.

OZLME in five parts

Och-Ziff refinanced its class A, class B, class C, class D and class E notes in a refinancing issued by OZLME BV.

The spreads on all five classes of the notes were reduced in the refinancing.

The weighted average life covenant was extended by one year, according to Moody’s Investors Service.

In this cash-flow CLO, 90% of the portfolio must be secured senior loans or bonds and up to 10% may be unsecured senior loans, second-lien loans, high-yield bonds and mezzanine loans.

The original classes of notes were redeemed with proceeds from the refinancing.

TICP XIV prices new CLO

TPG Sixth Street Partners priced $402.35 million in a broadly syndicated CLO with TICP CLO XIV Ltd. as issuer that will be managed by TICP CLO XIV Management LLC.

The portfolio needs to be collateralized by at least 90% senior secured loans, cash and eligible investments.

Up to 65% of the portfolio can be made up of loans that are covenant-lite.

Up to 5% can be debtor-in-possession facilities.

The industry concentration for CLOs managed by TICP CLO XIV Management LLC and its affiliates favor software.

In this portfolio the top five industries are software, commercial services and supplies, media, health care providers and services and capital markets, according to S&P Global Ratings.

Citigroup Global Markets Inc. was listed as the arranger on the new deal.

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