CLO activity slows; Spire prices second refinancing of Aurium CLO I for €416 million

Chicago, Sept. 11 – In a relatively quiet day for the collateralized loan obligation market, only one issuer emerged in primary activity.

Spire Management Ltd. came forward with pricing on a second refinancing of a vintage CLO from 2015 that was initially refinanced in 2017.

The deal is still subject to passage of an extraordinary resolution.

The CLO secondary market on Tuesday, the last day for which statistics are available, was the most active day of September so far.

In the CBO/CDO/CLO investment-grade sector, a tremendous $556.81 million exchanged hands, according to Trace data.

There were 145 trades for the high-grade market with an average price of 98.5.

The non-investment grade volume was in line with other trading days in the month with $65.74 million in 28 trades for an average price of 94.4.

Aurium re-refinances

Subject to approval, Aurium CLO I DAC is refinancing its entire portfolio of six classes of notes plus its subordinated notes.

The subordinated notes are being exchanged with an additional €11.48 million being issued.

The new notes come with an updated two-year non-call period.

According to the offering circular, a minimum of 70% of the portfolio needs to be secured senior loans. A maximum of 30% of the portfolio can be secured senior bonds.

In the portfolio, a maximum of 30% of the loans can be covenant-lite.

The Rule 144A and Regulation S notes are being handled by Barclays as agent.

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