Cutwater refinances $347.7 million 2014 CLO notes; House votes to roll back Dodd-Frank

By Cristal Cody

Tupelo, Miss., June 8 – Cutwater Investor Services Corp. refinanced its second vintage CLO deal year to date.

The CLO manager refinanced $347.7 million of notes from the 2014 deal.

CLO refinancing volume totals more than $81 billion year to date, according to market sources.

In other action on Thursday, the U.S. House of Representatives voted to overturn parts of the Dodd-Frank Act, including the Volcker Rule, which was enacted following the 2008 financial crisis.

New CLOs priced after December had to be in compliance with the Volcker Rule, which prohibits collateral of bonds, senior secured notes and other non-loan assets.

Cutwater refinances

Cutwater Investor Services sold $347.7 million of notes due July 15, 2026 in a refinancing of a vintage 2014 CLO offering, according to a market source.

Cutwater 2014-I, Ltd./Cutwater 2014-I, LLC sold $216.6 million of class A-1a-R senior secured floating-rate notes at Libor plus 125 basis points at the top of the capital structure.

Credit Suisse Securities (USA) LLC arranged the deal.

In the original $415.4 million transaction priced on July 8, 2014, the CLO sold $216.6 million of class A-1a senior secured floating-rate notes at Libor plus 152 bps.

Proceeds were used to redeem the original class A-1a, A-1b, A-2, B and C notes.

The refinanced CLO is collateralized primarily by broadly syndicated senior secured corporate loans.

Cutwater has refinanced two vintage CLOs year to date.

The investment management firm is based in New York City.

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