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Octagon refinances $645.35 million 2014 CLO; mezzanine securities active in secondary market
By Cristal Cody
Tupelo, Miss., May 12 – Octagon Credit Investors, LLC refinanced $645.35 million of notes from a 2014 CLO offering.
The deal is Octagon Credit Investors’ third CLO refinancing transaction year to date.
About $70 billion of U.S. CLOs have been refinanced in 2017, according to market sources.
CLO managers have priced more than $21 billion of new CLOs year to date.
In other activity, secondary market volume has been strong over the week in mezzanine-rated securitized notes.
On Thursday, the session saw $318.03 million of non-investment-grade CBO/CDO/CLO issues trade, while $202.83 million were traded on Wednesday, $389.7 million were traded on Tuesday and $206.35 million were traded on Monday, according to Trace.
During Thursday’s session, $102.53 million of high-grade securities were traded. On Wednesday, $88.7 million of investment-grade issues traded, while $63.3 million of securities traded on Tuesday and $75.74 million traded on Monday.
Octagon refinances XX CLO
Octagon Credit Investors refinanced $645.35 million of notes due Aug. 17, 2026 in the Octagon Investment Partners XX, Ltd./Octagon Investment Partners XX, LLC transaction, according to a market source.
The CLO sold $480 million of class A-R senior secured floating-rate notes at Libor plus 113 basis points in the senior tranche.
J.P. Morgan Securities LLC arranged the offering.
In the original $770.3 million transaction priced on July 10, 2014, the CLO sold $480 million of the class A senior secured notes at Libor plus 144 bps.
Proceeds were used to redeem the original class A, B, C and D notes on Friday.
The CLO is backed primarily by broadly syndicated senior secured corporate loans.
In 2016, Octagon Credit Investors priced three new CLOs and refinanced one CLO.
The New York-based credit investment firm is a subsidiary of Conning & Co.
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