Invesco, Carlyle refinance U.S. CLOs; Blackstone/GSO refinances €307 million CLO

By Cristal Cody

Eureka Springs, Ark., Jan. 24 – Invesco Senior Secured Management, Inc., Carlyle Investment Management LLC and Blackstone/GSO Debt Funds Management Europe Ltd. refinanced CLO transactions first priced in 2014.

Invesco Senior Secured Management refinanced $534.5 million of notes in the Limerock CLO II Ltd./Limerock CLO II LLC transaction.

Carlyle Investment Management placed $497 million of notes.

In Europe, Blackstone/GSO Debt Funds Management Europe refinanced €307 million of notes.

“The new issue U.S. CLO market has continued to be dominated by refinancings with 90% of notional volume that has priced in 2017 being refinancings,” according to a Jan. 20 note from J.P. Morgan Securities LLC. “Only 11% of the 2013 vintage and 16% of the 2014 vintage has been refinanced/reset, and we believe the majority of CLO refinancings in 2017 will come from these two vintages given the SEC No Action Letter that carves out CLOs issued prior to December 24, 2014 and allows for refinancings within four years of the original closing date of the CLO transaction.”

Invesco refinances CLO

Invesco Senior Secured Management refinanced $534.5 million of notes due April 18, 2026 in the Limerock CLO II deal originally brought to market in 2014, according to an informed source.

The CLO priced $406.25 million of class A-R senior secured floating-rate notes (Aaa/AAA) at Libor plus 130 basis points at the top of the capital structure.

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

Proceeds were used to redeem the original notes.

Invesco Senior Secured Management, a subsidiary of Atlanta-based Invesco, Ltd., was last in the CLO primary market with a deal in 2014.

Carlyle refinances CLO 2014-2

Carlyle Investment Management priced $497 million of notes due May 15, 2025 in a refinancing of a vintage 2014 broadly syndicated CLO transaction, according to a market source.

Carlyle Global Market Strategies CLO 2014-2 Ltd. sold $377 million of class A-R floating-rate notes at Libor plus 125 bps in the senior tranche.

MUFG arranged the refinancing.

Proceeds will be used to redeem the original notes on Feb. 15.

Carlyle priced four new U.S. CLOs and refinanced five vintage CLOs in 2016.

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

Blackstone/GSO refinances

Blackstone/GSO Debt Funds Management Europe refinanced €307 million of notes due July 29, 2027 in the Phoenix Park CLO Ltd./Phoenix Park CLO LLC transaction, according to a market source.

The CLO sold $236 million of class A-1-R senior secured floating-rate notes at Euribor plus 110 bps at the top of the capital stack.

BofA Merrill Lynch was the refinancing agent.

GSO/Blackstone will manage the CLO.

The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Proceeds from the offering will be used to redeem the original notes that were issued on July 24, 2014.

Blackstone/GSO was in the primary market in 2016 with three euro-denominated CLO transactions.

The Dublin-based manager is an affiliate of Blackstone Group LP.

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