ICG prices $408 million; GC Investment wraps $546.9 million refinancing; spreads firm

By Cristal Cody

Tupelo, Miss., Jan. 24 – Two more managers have refinanced vintage CLO deals so far in 2020.

ICG Debt Advisors LLC priced $411 million of notes in a refinancing of a vintage 2015 broadly syndicated CLO.

GC Investment Management LLC closed Friday on its $400 million second reprint of AAA-rated notes from a vintage 2015 middle-market CLO.

Meanwhile, the new issue market is starting to awaken.

“The U.S. primary CLO market is creaking to life” with two standard CLOs priced so far in 2020, according to a Wells Fargo Securities LLC structured products research note on Friday.

“Primary debt levels have tightened, and all-in debt costs on primary CLOs look to have tightened by 15-20 [basis points] compared to late October,” Wells Fargo analysts said in the report. “Refi CLO AAA spreads have settled in the 100 bps area.”

Broadly syndicated primary AAAs are quoted about 1 bp tighter on the week in the Libor plus 127 bps area, while at the bottom of the stack, new issue BB tranches have firmed 25 bps to the Libor plus 625 bps area.

In the secondary market, CLO AAAs are trading unchanged at the Libor plus 110 bps area. BB-rated notes have firmed about 10 bps to the Libor plus 625 bps area, according to the note.

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