Benefit Street resets $521.7 million CLO; Halcyon refinances another deal; spreads flat

By Cristal Cody

Tupelo, Miss., July 24 – Benefit Street Partners LLC and Halcyon Loan Management, LLC refinanced vintage CLOs.

Benefit Street Partners priced a $521.7 million refinancing and reset of a 2013 deal.

Halcyon Loan Management refinanced $323.5 million of loans and notes from a vintage 2014 CLO.

Deal action remains “lively,” BofA Merrill Lynch analysts said in a note released on Monday.

The secondary market also has been active and had about $381 million of BWIC volume in the previous week, according to the note. The bulk was in investment-grade bonds.

“We saw an uptick in interests in AAA paper, but shorter-WAL BB bonds were also well-bid,” the analysts said.

Spreads were generally flat across the capital structure on the week. AAA-rated spreads were unchanged on Friday at Libor plus 115 basis points, according to the note.

Benefit Street reprices

Benefit Street Partners priced $521,775,000 of replacement notes in a refinancing and reset of a 2013 broadly syndicated CLO, according to a market source and a notice of executed second supplemental indenture on Friday.

Benefit Street Partners CLO III Ltd./Benefit Street Partners CLO III LLC sold $305.2 million of class A-1-R senior secured floating-rate notes at Libor plus 125 bps at the top of the capital stack.

Citigroup Global Markets Inc. was the refinancing placement agent.

The maturity on the refinanced notes was extended to July 20, 2029 from the original Jan. 20, 2026 maturity.

The original notes were issued on Dec. 5, 2013. The CLO sold $245.2 million of class A-1A notes at Libor plus 135 bps.

Benefit Street Partners has priced one new CLO and refinanced three vintage CLOs year to date.

The CLO manager priced one new CLO and refinanced one vintage CLO transaction in 2016.

The credit investment arm of Providence Equity Partners LLC is based in New York City.

Halcyon refinances CLO

Halcyon Loan Management refinanced $323.5 million of loans and notes due April 18, 2026 in a vintage 2014 CLO offering, according to a market source and a notice of executed supplemental indenture and security agreement on Friday.

Halcyon Loan Advisors Funding 2014-1 Ltd./Halcyon Loan Advisors Funding 2014-1 LLC sold $50 million of class A-R senior secured floating-rate loans at Libor plus 113 bps in the senior tranche.

Mizuho Securities USA LLC was the refinancing agent.

Halcyon Loan Advisors 2014-1 LLC is the CLO manager.

In the original CLO deal issued on March 6, 2014, the CLO priced the class A loans at Libor plus 145 bps.

Halcyon has refinanced three CLOs year to date.

The New York City-based management firm previously was in the U.S. CLO primary market in 2015.

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