GoldenTree refinances CLO second time; refinancing volume in line with forecasts

By Cristal Cody

Tupelo, Miss., Oct. 31 – GoldenTree Asset Management LP came to the primary market to price $615.8 million of notes in a second refinancing of a vintage 2014 CLO deal that closed this week.

More than $130 billion of vintage CLOs have been refinanced year to date.

About $160 billion to $170 billion of total refinanced CLO volume is expected by market sources for the year.

Meanwhile, securitized secondary trading volume has increased during the week. On Tuesday, $204.85 million of high-grade CBO/CDO/CLO issues and $186.67 million of lower-rated securities traded, according to Trace data.

The high-grade securities traded with an average price of 99.20, while the non-investment-grade issues had an average trading price of 84.70.

On Monday, $197.38 million of high-grade CBO/CDO/CLO issues traded with an average price of 99.70 and $100.12 million of lower-rated securities traded with an average price of 98.20.

In the same Tuesday period a week ago, $166.64 million of high-grade issues and $155.53 million of lower-rated securities traded.

The average price for the investment-grade securities was par, while the mezzanine tranches traded at an average price 88.00.

GoldenTree prices CLO

GoldenTree Asset Management priced $615.8 million of notes due Oct. 29, 2029 in a second refinancing of the GoldenTree Loan Opportunities IX Ltd./GoldenTree Loan Opportunities IX, LLC deal, according to a market source and a notice of executed second supplemental indenture on Tuesday.

GoldenTree Loan Opportunities IX priced $402.25 million of class A-R-2 senior secured floating-rate notes at Libor plus 111 basis points at the top of the capital structure.

Citigroup Global Markets Inc. arranged the deal.

GoldenTree originally sold $667.75 million of the CLO notes on Oct. 3, 2014. The CLO originally priced $409.5 million of class A notes at Libor plus 151 bps.

In the Oct. 31, 2016 first refinancing, the CLO sold $409.5 million of class A-R senior secured floating-rate notes at Libor plus 137 bps.

Proceeds were used to redeem the existing notes.

The transaction is backed primarily by broadly syndicated first-lien senior secured loans.

GoldenTree Asset Management has priced one new CLO and refinanced two vintage CLOs year to date.

The New York City-based private investment firm priced two new CLOs and refinanced one vintage CLO in 2017.

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