Hayfin, HPS price euro CLOs; Barings brings two deals; Octagon reprints $779.8 million

By Cristal Cody

Tupelo, Miss., March 18 – A few CLO managers are getting broadly syndicated deals priced in the U.S. and European primary markets.

Hayfin Capital Management LLC sold €407.9 million of notes in a new euro CLO offering.

Meanwhile, HPS Investment Partners CLO (UK), LLP closed Friday on its €411.6 million Aqueduct European CLO 3-2019 DAC transaction.

In the U.S. primary market, Barings LLC priced $505.95 million of notes in the manager’s first new issue CLO this year.

Barings also sold $508.05 million of notes on Friday in a reissue of a vintage 2016 CLO offering.

In other action, Octagon Credit Investors, LLC priced $779.8 million of notes in a second refinancing of a vintage 2015 CLO deal.

CLO primary action has been steady but light in March, while refinancing action remains thin, market sources report.

In new issuance last week, pricing “levels across the capital structure were consistent with that seen in recent weeks,” BofA Merrill Lynch analysts said in a note released on Monday. “Manager tiering continues to be the dominant determinant of financing levels.”

Meanwhile in the commercial real estate collateralized loan obligation market, issuance is mostly expected to be flat in 2019, according to a panel consensus at an Information Management Network investors conference last week that was highlighted in a Kroll Bond Rating Agency release on Monday.

“An audience poll and the investors forum were a bit more bullish, expecting a moderate uptick,” said Kroll, which co-sponsored the event.

In 2018, the CRE CLO space saw $13.9 billion of deal volume.

Hayfin prices €407.9 million

Hayfin Capital Management sold €407.9 million of notes due May 27, 2032 in a new broadly syndicated CLO deal, according to market sources on Monday.

Hayfin Emerald CLO II DAC priced €148 million of class A-1 senior secured floating-rate notes at par to yield Euribor plus 116 basis points at the top of the capital stack.

Goldman Sachs International was the placement agent.

The deal is backed primarily by senior secured obligations.

Hayfin Capital Management is part of London-based alternative asset management firm Hayfin Capital Management LLP.

HPS wraps euro CLO

HPS Investment Partners CLO (UK) closed Friday on the new €411.6 million Aqueduct European CLO 3-2019 transaction, according to a market source.

The CLO sold €240 million of class A senior secured floating-rate notes (Aaa//AAA) at Euribor plus 108 bps at the top of the capital structure.

The notes are due May 15, 2032.

Citigroup Global Markets Ltd. was the placement agent.

The deal is backed primarily by euro-denominated broadly syndicated senior secured loans and bonds.

HPS Investment Partners CLO (UK) is a subsidiary of New York-based investment firm HPS Investment Partners LLC.

Barings prices new CLO

Barings sold $505.95 million of notes due April 15, 2031 in the manager’s first new issue CLO offering of the year, according to a market source.

Barings CLO Ltd. 2019-I/Barings CLO Ltd. 2019-I LLC priced $294 million of class A-1 senior secured floating-rate notes at par to yield Libor plus 132 bps at the top of the capital stack.

Barclays was the placement agent.

The issue is backed mainly by broadly syndicated senior secured loans.

In 2018, Barings priced four new CLOs.

The Charlotte, N.C.-based CLO manager is a subsidiary of Massachusetts Mutual Life Insurance Co.

Barings reprints CLO

Barings sold $508.05 million of notes due April 15, 2031 on Friday in a reissue of a vintage 2016 CLO offering called Barings CLO Ltd. 2016-III, according to a market source.

The renamed Barings CLO Ltd. 2019-II/Barings CLO Ltd. 2019-II LLC vehicle priced $298.75 million of the class A-1A senior secured floating-rate notes at Libor plus 135 bps.

BofA Merrill Lynch was the placement agent.

The original $512.3 million offering of notes due Jan. 15, 2028 were issued Dec. 8, 2016. In that deal, the CLO had priced $310 million of class A-1 senior secured floating-rate notes at Libor plus 143 bps.

The CLO is backed primarily by broadly syndicated senior secured loans.

Octagon brings $779.8 million

Octagon Credit Investors priced $779.8 million of notes in a second refinancing of a vintage 2015 CLO transaction, according to a market source and a notice of executed amended and restated indenture.

Octagon Investment Partners 24, Ltd./Octagon Investment Partners 24, LLC sold $522.7 million of the class A-1S senior secured floating-rate notes Libor plus 133 bps.

BofA Merrill Lynch was the refinancing placement agent.

The maturity on the reset notes was extended to April 21, 2031 from the original May 21, 2027 maturity.

The original $758.9 million Octagon Investment Partners XXIV deal was issued May 21, 2015. In that offering, the CLO sold $484.4 million of class A-1 floating-rate notes Libor plus 145 bps.

The notes were first refinanced on Oct. 10, 2017. In that transaction, the CLO sold $484,375,000 of class A-1-R senior secured floating-rate notes at Libor plus 90 bps.

Proceeds were used to redeem the outstanding notes.

The New York-based credit investment firm is a subsidiary of Conning & Co.

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