DoubleLine prices $409.5 million; Commerzbank reprices 2016 CLO, original CLO sees losses

By Cristal Cody

Tupelo, Miss., May 9 – DoubleLine Capital LP priced $409.5 million notes in the CLO manager’s first deal since 2015.

In the European market, Commerzbank AG, London Branch repriced €254.4 million of notes from the 2016 CLO transaction, Bosphorus CLO II DAC.

Fitch Ratings said in a release on April 26 that the original CLO deal crystallized “approximately 25 [basis points] of losses following reinvestment of unscheduled proceeds at premium prices prior to the end of the reinvestment period. This has resulted in a slight deterioration of credit enhancement for the rated notes as well as the over-collateralization cushions.”

The CLO’s reinvestment period expired on April 15, Fitch said.

In other refinancing action, Blackstone/GSO Debt Funds Management Europe Ltd. refinanced two euro-denominated CLOs, Sorrento Park CLO Ltd. and Holland Park CLO Ltd., according to a market source. Final pricing details were not available by press time.

More than €9 billion of euro-denominated CLOs have been refinanced year to date, according to market sources.

Some European CLO “investors reported struggles to stay invested, as the refinancing/re-set wave often led to assets being called away,” Wells Fargo Securities, LLC analysts said in a note on Tuesday following meetings with market participants in London over the past week. “Investors reported that refi pricing for euro CLOs was less efficient and less predictable than refi pricing on U.S. CLOs – or even that it was ‘too soon’ for Euro refis.”

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