Five Arrows sells €297.35 million CLO; Fortress reprices 2017 CLO notes, eyes reprint

By Cristal Cody

Tupelo, Miss., Aug. 11 – The European CLO primary market remains active, while refinancing action is resuming in the dollar-denominated market.

Five Arrows Managers LLP priced a €297.35 million new euro-denominated CLO offering.

Euro-denominated supply totals about €13 billion year to date, according to market sources.

Meanwhile, the refinancing space is continuing to see activity after a lull started in March due to the pandemic.

Fortress Investment Group LLC affiliate FCOD CLO Management LLC priced a $100 million partial refinancing of notes from a vintage 2017 middle-market CLO.

Also, Fortress plans to refinance two tranches of fixed-rate notes from a vintage 2018 middle-market CLO.

As reported on Monday, MJX Asset Management LLC repriced the fixed-rate tranches from three vintage CLOs issued in 2017 and 2018.

Refinancing volume totals about $23 billion year to date, according to market sources.

Contego CLO VIII prices

Five Arrows Managers priced €297.35 million of notes due Jan. 25, 2032 in the CLO, according to market sources.

Contego CLO VIII DAC sold €175.5 million of class A floating-rate notes at Euribor plus 145 basis points in the AAA-rated tranche.

Citigroup Global Markets Ltd. was the placement agent.

The CLO is backed by senior secured obligations.

Five Arrows Managers is a London-based subsidiary of the Rothschild Group.

Fortress prices $100 million

FCOD CLO Management priced $100 million of notes in two tranches in a partial refinancing of the Fortress Credit Opportunities IX CLO Ltd./Fortress Credit Opportunities IX CLO LLC transaction, according to a market source and a notice of revised supplemental indenture on Monday.

The CLO priced $11 million of class A-1F-R1 senior secured floating-rate notes at Libor plus 235 bps and $89 million of 2.53% class A-1F-R2 senior secured fixed-rate notes.

The original $100 million of class A-1F fixed-rate notes were priced with a 3.65% coupon in the Fortress Credit Opportunities IX offering on Nov. 15, 2017.

Natixis Securities Americas LLC was the refinancing placement agent.

The notes are due Nov. 15, 2029.

The deal is backed primarily by middle-market senior secured corporate loans.

New York-based Fortress Investment Group has priced one new middle-market CLO in 2020.

Fortress refinancing

FCOD CLO Management also plans to refinance two tranches of fixed-rate notes due April 15, 2031 from a vintage 2018 middle-market CLO transaction, according to a notice of proposed supplemental indenture on Monday.

Fortress Credit Opportunities XI CLO Ltd./Fortress Credit Opportunities XI CLO LLC intends to price class A-1F-R senior secured fixed-rate notes (expected ratings Aaa/AAA) and class B-F-R senior secured fixed-rate notes (expected rating AA).

The original $30 million of 4.03% class A-1F notes and $13.9 million of 4.45% class B-F notes were issued April 16, 2018.

Natixis Securities America LLC is the refinancing placement agent.

The CLO is backed primarily by middle-market senior secured corporate loans.

Fortress Investment Group is based in New York.

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