Romark prices $467 million in 2013 CLO reset; refinancing pace strong; secondary active

By Cristal Cody

Tupelo, Miss., Feb. 16 – Details emerged for a vintage 2013 CLO deal that has been refinanced and reset.

Romark CLO Advisors LLC sold $467 million of notes in the transaction that was originally priced by affiliate Shenkman Capital Management, Inc.

More than $15 billion of vintage CLO notes have been refinanced year to date, according to market sources.

Refinancing action is expected to ramp up if the U.S. Court of Appeals for the District of Columbia’s ruling a week ago holds, market sources report. The ruling provides that CLO managers are not subject to risk retention rules, which require issuers to retain 5% of a CLO deal.

Elsewhere, in the securitized secondary market, trading in investment-grade CBO/CDO/CLO issues rose to $167.71 million on Thursday from $57.57 million on Wednesday, according to Trace.

Trading in lower-rated CBO/CDO/CLO securities fell to $191.59 million in the previous session from $257.61 million on Wednesday.

Romark refinances 2013 CLO

Romark CLO Advisors sold $467,025,000 of notes in the CLO refinancing and reset, according to a market source and a notice of executed supplemental indenture on Friday.

Brookside Mill CLO Ltd./Brookside Mill CLO LLC priced the $270.9 million tranche of class A-R senior floating-rate notes at Libor plus 82 basis points.

BofA Merrill Lynch arranged the offering.

Romark will manage the CLO.

The maturity on the notes was extended to Jan. 17, 2028 from the original April 2025 maturity.

Shenkman Capital Management priced the original $471.38 million CLO, which was issued on May 23, 2013.

Proceeds from the refinancing were used to redeem the original notes.

Romark is an affiliate of New York-based investment firm Shenkman Capital Management.

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