Palmer Square Capital, BNP Paribas refinance CLOs; refinancing volume strong

By Cristal Cody

Tupelo, Miss., May 3 – Palmer Square Capital Management LLC refinanced $322.1 million of notes from a vintage 2013 CLO in its second refinancing transaction of 2017.

Also, BNP Paribas Asset Management Inc. refinanced $317 million of notes from a 2014 CLO deal.

Nearly $70 billion of U.S. CLOs have been refinanced year to date, while more than $21 billion of new CLOs have priced in 2017, according to market sources.

Palmer Square refinances

Palmer Square Capital Management refinanced $322.1 million of notes due May 15, 2025 from a vintage 2013 CLO, according to a notice of optional redemption and notice of revised proposed supplemental indenture on Tuesday.

Palmer Square CLO 2013-1, Ltd./Palmer Square CLO 2013-1, LLC priced $212.8 million of class A-1-R senior secured floating-rate notes at Libor plus 97 basis points in the senior tranche.

J.P. Morgan Securities LLC arranged the transaction.

In the original transaction settled on May 17, 2013, Palmer Square CLO 2013-1 sold $212.8 million of class A-1 floating-rate notes at Libor plus 125 bps.

Proceeds from the offering will be used to redeem the original class A-1, A-2, B, C and D notes on May 15.

Palmer Square Capital has refinanced two vintage 2013 CLOs year to date.

The Leawood, Kan.-based asset management firm priced two CLO deals in 2016.

BNP refinances $317 million

BNP Paribas Asset Management refinanced $317 million of notes due April 24, 2026 in three tranches from a 2014 CLO deal, according to a notice of executed supplemental indenture on Tuesday.

BNPP IP CLO 2014-1, Ltd./BNPP IP CLO 2014-1, LLC priced $234 million of class A-1-R senior secured floating-rate notes at Libor plus 120 bps at the top of the three-part deal.

BNP Paribas Securities Corp. was the refinancing agent.

In the original $400.8 million transaction priced on March 14, 2014, the CLO sold $234 million of class A-1 senior secured floating-rate notes at Libor plus 145 bps.

Proceeds from the refinancing were used to redeem the original class A-1, A-2 and B notes on Monday.

BNP Paribas Asset Management is a New York City-based subsidiary of BNP Paribas Investment Partners USA Holdings Inc.

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