Toro European CLO 6 and Guggenheim Partners price new deals; Apidos CLO XI refinances

Chicago, Sept. 6 – CLO issuance picked up on Friday with a dollar-denominated deal pricing, a Euro-denominated issue coming to market and details surfacing on a second refinancing.

Guggenheim priced $405.1 million from issuers Guggenheim CLO 2019-1 Ltd./Guggenheim CLO 2019-1 LLC in a deal that is set to close on Sept. 20.

Chenavari Credit Partners LLP brought €360.4 million of notes due Jan. 12, 2032 in its Toro European CLO 6 DAC transaction.

And, in a second refinancing CVC Credit Partners LLC priced $373.95 million of its Apidos CLO XI/Apidos CLO XI LLC in a deal that will redeem and issue anew six classes of notes in the portfolio.

And, the collateralized secondary market was busier on Thursday, according to Trace data.

Combined, the CBO/CDO/CLO market had $319.12 million exchange hands, the highest volume of the week, with the caveat that Friday data will be forthcoming.

Investment-grade secondary trading made up $202.59 million of that total. The average price was 98.7.

That left $116.533 million for the non-investment grade sector, with an average price of 86.9.

Guggenheim sells $405.1 million

Guggenheim’s new portfolio is set to be collateralized by a minimum of 90% senior secured loans.

A maximum of 75% of the loans in the collateral pool can be covenant-lite.

The top five industry distributions in the CLO are: capital markets; machinery; health care providers and services; hotels, restaurants and leisure and trading companies and distributors.

The industries of the top five obligors are pharmaceuticals, capital markets, electrical equipment, aerospace and defense and diversified consumer services.

A-2 notes in CLO 2019-1

Of the seven classes of notes sold in the Guggenheim Partners Investment Management LLC portfolio, details on the A-2 notes are of special interest.

The A-2 notes are exchangeable as Mascot (modifiable and splittable/combinable tranche) principal and interest notes.

Accordingly, the notes are exchangeable for proportionate interest in combinations of principal notes and interest-only notes of the same class.

There are four possible combinations for the A-2 notes.

Guggenheim has placed 22 CLOs since 2002, 10 of which are currently in the reinvestment period.

Toro prices €360.4 million

In the Euro market, Toro European CLO 6 emerged with €360.4 million, listed on the Irish Stock Exchange on Friday.

The weighted average rating factor by Fitch Ratings is 32.4, according to a ratings report.

Fitch also placed the average credit quality of the obligors of the portfolio in the ‘B’ range.

Covenants protect the portfolio from excessive concentration in one industry. The maximum exposure to the three largest industries in the portfolio is 42%.

The cash flow CLO came to market with eight classes of notes.

Apidos refinances

In a second refinancing, Apidos CLO XI will redeem $366.65 million of five classes of notes on Sept. 12 with proceeds from new notes.

The class A-R, B-R, C-R, D-R and E-R notes, all from the first refinancing, will be redeemed.

RBC Capital Markets, LLC acted as the second refinancing placement agent.

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