JMP prices $456.87 million CLO; MJX, Palmer Square refinance; spreads near post-crisis tights

By Cristal Cody

Tupelo, Miss., June 30 – JMP Credit Advisors LLC announced on Friday it wrapped a $456.87 million new CLO offering.

“JMP Credit Advisors CLO IV is our third transaction since the end of the credit crisis,” Bryan Hamm, president of JMP Credit Advisors, said in a release.

In refinancing action, MJX Asset Management LLC repriced $570.5 million of notes from a 2014 CLO.

Palmer Square Capital Management LLC priced $557.6 million of notes in a refinancing and reset of a 2015 deal.

“Today, issuers have printed over $10 billion per month in the past three months – on top of $110 billion of year-to-date reset and refi activity,” Wells Fargo Securities, LLC analysts said in a note released on Friday. “Currently, CLO primary spreads are at, or near, post-crisis tights.”

CLO AAAs are pricing in the Libor plus 123 basis points area, compared to the Libor plus 115 bps area in May 2013, according to the note.

In the secondary market, 2.0 CLO AAA notes are trading in the Libor plus 113 bps area, the analysts said.

“CLO AAA spreads have remained fairly flat over the past several weeks, while secondary spreads lower in the stack have edged tighter in the past few months,” the analysts said. “While AAA spreads are at their 52-week tights, the rest of the capital stack is 10-20 bps wide of the 52-week tights.”

JMP prices $456.87 million

JMP Credit Advisors sold $456.87 million of senior notes due July 17, 2029 in the JMP Credit Advisors CLO IV Ltd./JMP Credit Advisors CLO IV LLC transaction, according to a market source and a news release from parent company JMP Group LLC on Friday.

The CLO sold $285.75 million of class A senior secured floating-rate notes at Libor plus 137 bps.

BNP Paribas Securities Corp. was the placement agent.

The CLO has a two-year non-call period and a four-year reinvestment period.

JMP Credit Advisors is an asset manager based in Alpharetta, Ga.

MJX refinances $570.5 million

MJX Asset Management priced $570.5 million of notes due July 15, 2026 in a refinancing of the 2014 Venture XVII CLO, Ltd./Venture XVII CLO, LLC transaction, according to a market source and a notice of optional redemption by refinancing and revised proposed supplemental indenture on Thursday.

The CLO sold $432 million of class A-R senior secured floating-rate notes at Libor plus 108 bps in the AAA-rated tranche.

RBC Capital Markets, LLC arranged the transaction.

In the original $716.7 million transaction priced on April 30, 2014, the CLO sold $432 million of class A floating-rate notes at Libor plus 148 bps.

MJX has priced two new CLOs and refinanced three vintage CLOs year to date.

The New York City-based asset management firm priced three new CLO transactions and refinanced three CLOs in 2016.

Palmer Square resets 2015 CLO

Palmer Square Capital Management priced $557.6 million of notes in a refinancing and reset of a 2015 CLO offering, according to a market source and a notice of revised proposed supplemental indenture and proposed amendment No. 1 to collateral management agreement on Thursday.

Palmer Square CLO 2015-2, Ltd./Palmer Square CLO 2015-2, LLC priced $330 million of class A-1A-R senior secured floating-rate notes at Libor plus 127 bps at the top of the capital structure.

Citigroup Global Markets Inc. arranged the transaction.

The maturity on the refinanced notes was extended to July 20, 2030 from the original July 20, 2027 maturity.

In the original $408.15 million transaction settled on July 25, 2015, the CLO priced $247.8 million of class A-1A senior secured floating-rate notes at Libor plus 150 bps.

Palmer Square Capital has refinanced three vintage CLOs year to date.

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