Palmer Square closes on new $505.7 million CLO; CVC brings refinancing of 2013 CLO

By Cristal Cody

Tupelo, Miss., April 25 – Palmer Square Capital Management LLC priced and closed on a $505.7 million new CLO deal, according to details that emerged on Wednesday.

In other action, CVC Credit Partners, LLC priced $486.25 million of notes in a reset and second refinancing of a vintage 2013 CLO in the manager’s second refinancing deal of the year.

CLO managers have priced more than $32 billion of new CLOs year to date, according to market sources. In addition, more than $44 billion of vintage CLOs have been refinanced in the first four months of the year.

Palmer Square prices CLO

Palmer Square Capital Management priced and closed on a $505.7 million offering of notes due July 15, 2026 in the static Palmer Square Loan Funding 2018-2 Ltd./Palmer Square Loan Funding 2018-2, LLC transaction, according to a market source on Wednesday.

The CLO sold $338.2 million of class A-1 floating-rate notes at Libor plus 65 basis points in the senior tranche.

J.P. Morgan Securities LLC was the placement agent.

Palmer Square Capital is an investment management firm based in Leawood, Kan.

CVC resets CLO notes

CVC Credit Partners priced $486.25 million of notes in a reset and second refinancing of a vintage 2013 CLO, according to a market source and a notice of executed third supplemental indenture on Tuesday.

Apidos CLO XV/Apidos CLO XV LLC priced the $300 million of class A-1-RR senior secured floating-rate notes at Libor plus 101 bps.

Barclays arranged the transaction.

The maturity on the notes was extended to April 20, 2031 from the original Oct. 20, 2025 maturity.

The original $512.7 million CLO was issued on Oct. 16, 2013 and was first partially refinanced on March 7, 2017 in a $407 million transaction.

The original Apidos CLO XV priced $304 million of the class A-1 senior secured floating-rate notes at Libor plus 135 bps.

In the first refinancing, the CLO sold $304 million of class A-1-R floating-rate notes at Libor plus 110 bps.

CVC Credit Partners has refinanced two vintage CLOs year to date.

The New York City-based subsidiary of London-based CVC Capital Partners Ltd. priced two new CLOs and refinanced four vintage CLOs in 2017.

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