First Eagle Alternative Credit plans 2021 CLO reprint; Ares, Voya, PGIM wrap deals

By Cristal Cody

Tupelo, Miss., Dec. 2 – First Eagle Alternative Credit, LLC is eying the new year to refinance notes from a $355.5 million 2016 CLO.

The CLO manager is anticipating refinancing the notes on or after Jan. 15.

Elsewhere in CLO market activity on Wednesday, several managers closed on new deals.

Ares Management LP subsidiary Ares CLO Management LLC settled its $409 million Ares LVII CLO Ltd./Ares LVII CLO LLC offering, which placed the AAA-rated tranche at Libor plus 132 basis points.

Voya Alternative Asset Management LLC wrapped its €253 million Voya Euro CLO IV DAC deal on Wednesday. The CLO priced the class A floating-rate notes at Euribor plus 115 bps.

Also on Wednesday, PGIM, Inc. closed on its €358 million Dryden 79 Euro CLO 2020 DAC deal, which placed the senior tranche at Euribor plus 120 bps.

Deal volume year to date includes more than $70 billion of new issue broadly syndicated CLOs, over €20 billion of European broadly syndicated supply and more than $31 billion of refinanced CLO notes, according to market sources.

Secondary market active

In the secondary market, CBO/CDO/CLO paper improved across the capital stack on Tuesday, according to Trace data.

In the previous session, $329.93 million of investment-grade notes were traded at an average price of 99.00, compared to $158.84 million of high-grade paper that averaged 98.50 on Monday.

Further down the capital structure, $175.36 million of lower-rated issues traded with an 84.60 average price on Tuesday.

On Monday, $109.38 million of non-high-grade CBO/CDO/CLO issues traded at an average price of 80.10.

First Eagle to reprice CLO

First Eagle Alternative Credit plans to refinance notes from the KVK CLO 2016-1 Ltd. transaction, according to a market notice.

In the CLO offering issued Dec. 23, 2016, the CLO priced $218.75 million of class A floating-rate notes at Libor plus 154 bps; $45.5 million of class B floating-rate notes at Libor plus 225 bps; $22.75 million of class C floating-rate notes at Libor plus 315 bps; $17.5 million of class D floating-rate notes at Libor plus 440 bps; $17.5 million of class E floating-rate notes at Libor plus 790 bps and $33.5 million of subordinated notes.

The notes are due Jan. 15, 2029.

First Eagle is the collateral manager with PGIM, Inc. designated as a successor manager.

Boston-based First Eagle is an alternative credit management firm.

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