Sound Point Capital, AXA refinance CLO notes at par; Apex to price $403.4 million CLO

By Cristal Cody

Eureka Springs, Ark., Jan. 25 – Sound Point Capital Management LP refinanced a vintage CLO deal as refinancing activity continues to remain ramped up in 2017.

Sound Point Capital refinanced notes originally priced in 2013.

Also, AXA Investment Managers, Inc. refinanced $288 million of notes from a 2013 CLO.

The new issue market has seen one deal so far in 2017, though the pipeline is filling, according to market sources.

Apex Credit Partners LLC plans to price $403.4 million of notes in a new CLO transaction.

Sound Point refinances

Sound Point Capital Management priced $410 million of notes due July 15, 2025 at par in a refinancing of the vintage 2013 Sound Point CLO III, Ltd./Sound Point CLO III LLC transaction, according to a market source.

The CLO priced $315 million of class A-R senior secured floating-rate notes at Libor plus 130 basis points in the senior tranche.

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

Proceeds will be used to redeem the original notes.

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

Sound Point Capital, a New York-based asset management firm, priced three CLO deals in 2016.

AXA refinances $288 million

AXA Investment Managers priced $288 million of notes due Jan. 30, 2026 at par in a refinancing of a vintage 2013 CLO, according to a market source.

Allegro CLO I, Ltd./Allegro CLO I LLC sold $213.8 million of class A-1-R senior secured floating-rate notes at Libor plus 122 bps at the top of the stack.

Morgan Stanley & Co. LLC arranged the refinancing.

Proceeds will be used to redeem the original notes.

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

The asset management firm, a subsidiary of Paris-based AXA Group, priced one CLO offering in 2016.

Apex markets $403.4 million

Coming up in supply, Apex Credit Partners is offering $403.4 million notes due April 20, 2029 in the new JFIN CLO 2017 Ltd./JFIN CLO 2017 LLC deal, according to a market source.

The deal includes $225 million of class A-1 senior secured floating-rate notes (Aaa//AAA); $30 million of class A-F senior secured fixed-rate notes (Aaa//AAA); $45 million of class B senior secured floating-rate notes (Aa2); $11 million of class C-1 secured deferrable floating-rate notes (A2); $15 million of class C-F secured deferrable fixed-rate notes (A2); $21 million of class D secured deferrable floating-rate notes (Baa3) and $21 million of class E secured deferrable floating-rate notes (Ba3).

The deal includes $11.75 million of senior subordinated notes and $23.65 million of junior subordinated notes as equity.

Jefferies LLC is the placement agent.

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

Proceeds will be used to purchase a portfolio of about $400 million of mostly senior secured leveraged loans.

Apex priced one CLO offering in 2016.

The New York City-based commercial finance firm is a subsidiary of Jefferies Finance LLC.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.