PineBridge refinances $509.9 million CLO notes; non-high-grade secondary volume climbs

By Cristal Cody

Tupelo, Miss., Aug. 25 – PineBridge Investments LLC priced a $509.9 million refinancing and reset of a 2015 CLO deal in the firm’s third refinancing of the year.

More than $116 billion of U.S. dollar-denominated CLOs have been refinanced year to date, according to market sources.

Federal Reserve chairman Janet Yellen’s Jackson Hole, Wyo., speech at the annual central bank symposium kept market participants’ focus on Friday.

“Although some in the markets were concerned that chair Yellen could have delivered a more hawkish surprise by linking financial conditions more explicitly to future monetary policy actions ... her focus remained on the financial regulation topic,” George Goncalves, an analyst at Nomura Securities International, Inc., said in a note.

“Although the dollar took a hit, there was an overall relief rally in both risk assets and USTs,” he said. “That said, she acknowledged that some parts of the Volcker-rule and SLR may have room for change in order to improve market liquidity.”

In the securitized secondary market, trading volume was strong on Thursday compared to the rest of the week, Trace reported.

During the session, $106.58 million of high-grade CBO/CDO/CLO issues and $569.9 million of non-investment-grade securities were traded.

On Wednesday, $109.36 million of high-grade issues and $50.37 million of non-investment-grade securities were traded, while trading volume on Tuesday totaled $47.15 million in investment-grade issues and $48.9 million in the lower-rated tranches.

On Monday, $51.2 million of high-grade CBO/CDO/CLO issues traded, with too little trading volume in non-investment-grade securities to register, according to Trace.

PineBridge refinances CLO

PineBridge Investments priced $509.9 million of notes in a refinancing and reset of a vintage 2015 CLO offering, according to a market source.

Galaxy XIX CLO Ltd./Galaxy XIX CLO LLC sold $313 million of class A-1-R senior floating-rate notes at Libor plus 122 basis points and $61 million of class A-2-R senior floating-rate notes at Libor plus 170 bps in the senior tranches.

Goldman Sachs & Co. LLC was the refinancing placement agent.

The maturity on the refinanced notes was extended to July 24, 2030 from the original Feb. 16, 2027 maturity.

In the original $509.9 million deal priced on Jan. 29, 2015, the CLO sold $288 million of class A-1A floating-rate notes at Libor plus 155 bps, $25 million of 3.12% class A-1B fixed-rate notes and $61 million of class A-2 floating-rate notes at Libor plus 240 bps.

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

PineBridge Investments has priced one new CLO and refinanced three vintage CLOs year to date.

The asset management firm is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.