THL, Fortress, Brigade, Western Asset, NewStar refinance CLOs; reissue supply on tap

By Cristal Cody

Tupelo, Miss., July 23 – CLO refinancings are picking up steam in July with volume expected to remain heavy over the year, according to market sources on Monday.

THL Credit Advisors LLC refinanced $552 million of notes from a 2016 CLO.

Fortress Investment Group LLC sold $379.3 million of notes in a refinancing and reset of 2015 deal.

Brigade Capital Management, LLC priced $377 million of notes in a second refinancing and reset of a 2014 CLO.

Western Asset Management Co. Ltd. refinanced $259.18 million of notes from a 2013 CLO.

NewStar Financial, Inc. repriced $245.25 million of notes in a middle-market CLO.

Also, PGIM, Inc. priced $63 million of notes in a refinancing of two tranches from the Dryden 43 Senior Loan Fund/Dryden 43 Senior Loan Fund LLC deal.

“Although there may be a short summer reprieve in the near term, we expect U.S. CLO refi, reset and reissue supply to remain at elevated levels across the rest of 2018,” BofA Merrill Lynch analysts said in a note released on Monday. “In short, supply is likely to continue to hurt and place technical pressure on U.S. CLO spreads.”

The market currently has about $150 billion of CLOs that are callable, according to the note.

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