Octagon Credit Investors resets $520.4 million 2016 CLO; Cairn refinances 2016 notes

By Cristal Cody

Tupelo, Miss., July 19 – In new CLO refinancing action, deals priced in both the U.S. dollar- and euro-denominated primary markets.

Octagon Credit Investors, LLC refinanced a $520.4 million CLO that first priced in 2016.

Cairn Loan Investments LLP also refinanced €323.55 million of notes from a 2016 CLO.

About $66 billion of dollar-denominated CLOs have been refinanced year to date, while more than €11 billion of euro-denominated vintage CLOs have repriced, according to market sources.

Octagon refinances 27 CLO

Octagon Credit Investors priced $520.4 million of notes in a refinancing and reset of the Octagon Investment Partners 27, Ltd./Octagon Investment Partners 27, LLC transaction, according to a market source and a notice of executed second supplemental indenture on Tuesday.

The CLO sold $310 million of class A-1-R senior secured floating-rate notes at Libor plus 107 basis points in the senior tranche.

Morgan Stanley & Co. LLC arranged the offering.

The maturity on the notes was extended to July 15, 2030 from the original July 15, 2027 maturity.

In the original $510.4 million transaction issued June 28, 2016, the CLO sold $310 million of class A senior secured floating-rate notes at Libor plus 153 bps.

Proceeds were used to redeem the original notes.

Octagon Credit Investors has priced four new CLOs and refinanced three vintage CLOs year to date.

The New York-based credit investment firm is a subsidiary of Conning & Co.

Cairn reprices CLO VI

Cairn Loan Investments sold €323.55 million of notes due July 25, 2029 at par in a refinancing of the 2016 vintage Cairn CLO VI BV transaction, according to a market source and a notice to noteholders.

The CLO priced €212 million of class A-R senior secured floating-rate notes at Euribor plus 79 bps at the top of the capital stack.

Goldman Sachs International arranged the offering.

The original €362.93 million CLO was issued July 21, 2016. In that offering, the CLO priced €212 million of the class A senior secured floating-rate notes at Euribor plus 130 bps.

Proceeds will be used to redeem the original notes at par on July 25.

The transaction is backed primarily by broadly syndicated senior secured corporate loans and senior secured bonds.

The CLO manager is based in London.

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