Halcyon refinances $399.7 million 2015 CLO; year on pace for record refinancing volume

By Cristal Cody

Tupelo, Miss., Dec. 19 – CLO refinancing activity continues into December with the pace expected to remain strong in 2018, according to market sources.

Details emerged on Halcyon Loan Management, LLC’s fifth CLO refinancing of the year. The firm repriced $399.7 million of notes in three tranches from a vintage 2015 CLO.

Market sources expect the year to end with nearly $170 billion of total refinancing and reset volume, the highest CLO refinancing volume on record.

Halcyon refinances CLO

Halcyon Loan Management refinanced $399.7 million of notes due Oct. 18, 2027 in the offering, according to a notice of revised proposed first supplemental indenture on Monday.

Halcyon Loan Advisors Funding 2015-3 Ltd./Halcyon Loan Advisors Funding 2015-3 LLC priced $322.4 million of class A-1-R senior secured floating-rate notes at Libor plus 90 basis points in the senior tranche.

J.P. Morgan Securities LLC was the refinancing placement agent.

Halcyon Loan Advisors 2015-3 LLC is the CLO manager.

The original CLO deal was issued on Sept. 3, 2015. The $510.3 million CLO priced the $322.4 million of class A-1 floating-rate notes at Libor plus 155 bps.

Proceeds from the refinancing will be used to redeem the original class A-1, A-2 and B notes.

The management firm is based in New York.

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