3i refinances $406 million CLO, prints AAAs at Libor plus 108 bps; June refinancings active

By Cristal Cody

Tupelo, Miss., June 24 – 3i Debt Management U.S. LLC refinanced a $406 million vintage 2012 CLO offering and placed the AAA-rated tranche at a tighter Libor plus 108 basis points.

So far in June, CLO managers including GSO/Blackstone Debt Funds Management LLC, CIFC Asset Management LLC, Apollo Credit Management (CLO) LLC and Babson Capital Management LLC have refinanced 2012 vintage deals.

CLO managers have refinanced about $7.5 billion of CLO notes year to date, according to J.P. Morgan Securities LLC.

3i refinances Fraser Sullivan

3i Debt Management refinanced $406 million of notes due April 20, 2023 in a 2012 vintage collateralized loan obligation offering, a market source said.

Fraser Sullivan CLO VII Ltd. refinanced $273.5 million of class A-1R senior secured floating-rate notes at Libor plus 108 bps, tighter than where the original notes priced at Libor plus 130 bps.

The CLO sold $53.5 million of class A-2R senior secured floating-rate notes at Libor plus 180 bps, improved from where the notes originally priced at Libor plus 250 bps.

Fraser Sullivan CLO VII refinanced $39 million of class B-R senior secured deferrable floating-rate notes at Libor plus 250 bps, 50 bps better than the original print.

The CLO sold $21 million of class C-R senior secured deferrable floating-rate notes at Libor plus 345 bps, compared to where the notes first priced at Libor plus 400 bps.

The CLO also sold $19 million of class D-R senior secured deferrable floating-rate notes at Libor plus 525 bps, 25 bps better than where the tranche originally priced.

Citigroup Global Markets Inc. was the refinancing agent.

3i Debt Management is the CLO manager.

The CLO is backed primarily by broadly syndicated senior secured loans.

Proceeds from the transaction will be used to refinance the original classes of notes.

3i Debt Management has brought one new CLO deal year to date.

The New York City-based investment manager, a subsidiary of London-based 3i Group plc, priced two U.S. CLO deals in 2014.

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