Oaktree brings euro CLO; Apex refinances fixed-rate notes; rates rally fuels repricings

By Cristal Cody

Tupelo, Miss., Aug. 17 – A new euro-denominated CLO offering priced, while the dollar-denominated refinancing space is heating up in August.

Oaktree Capital Management (Europe) LLP sold €296.05 million of notes in the manager’s first broadly syndicated CLO deal this year.

Meanwhile in the refinancing space, Apex Credit Partners LLC priced $44.37 million of fixed-rate notes in a repricing of a tranche from a 2017 CLO.

CLO managers including Invesco Senior Secured Management, Inc., Fortress Investment Group LLC affiliate FCOD CLO Management LLC and MJX Asset Management LLC also have repriced vintage CLO notes in August.

“CLO managers continue to refinance their fixed-rate tranches with the rally in swap rates making it attractive to issue a new fixed-rate coupon despite spreads widening from pre-Covid levels,” BofA Securities, Inc. analysts said in a research note released Monday.

Swap rates have rallied by 140 basis points since the beginning of the year, and fixed-rate tranche yields are lower by 107 bps versus year-end 2019, the analysts said.

CLO managers have priced about $45 billion of new issues and refinanced about $26 billion of vintage CLOs year to date, according to the report.

Oaktree prices

Oaktree Capital Management (Europe) priced €296.05 million of notes due July 15, 2033 in the transaction, according to a market source.

Arbour CLO VIII Ltd. sold €174.7 million of class A floating-rate notes at Euribor plus 145 bps at the top of the capital stack.

The CLO is collateralized primarily by senior secured leveraged loans and bonds.

The offering is the manager’s first new issue of the year.

Oaktree priced two new euro-denominated CLOs and refinanced one vintage European CLO in 2019.

The London-based asset manager is an affiliate of Los Angeles-based Oaktree Capital Management, LP.

Apex reprices AAA notes

Apex Credit Partners priced $44,371,675 of class A-F-R notes with a 2.294% coupon in a refinancing of the fixed-rate tranche from the Apex Credit CLO 2017 Ltd. transaction, according to market sources.

The notes (//AAA) are due April 24, 2029.

Proceeds were used to redeem the original $45 million of class A-F notes that carried a 3.603% coupon.

The class A-F notes were originally issued Feb. 24, 2017 in the CLO previously known as JFIN CLO 2017 Ltd.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

The New York City-based commercial finance firm is co-owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

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