Saratoga Investment Advisors prices $566.5 million CLO reset; secondary trading strong

By Cristal Cody

Tupelo, Miss., Dec. 4 – Saratoga Investment Advisors LLC announced on Tuesday that it priced $566.5 million of notes in a reset and second refinancing of a vintage 2013 CLO deal.

More than $140 billion of vintage CLOs have been refinanced year to date, market sources report.

About $170 billion of total refinancing volume is expected by market analysts for the year.

In other activity, while secondary trading was heavy in non-high-grade CBO/CDO/CLO issues on Friday, trading volume jumped in investment-grade securities on Monday, Trace data shows.

The session had $656.33 million of high-grade trading volume, as well as $58.56 million of lower-rated securities trade.

The investment-grade issues had an average trading price of 99.1, while the non-investment-grade securities had a 94 average trading price.

On Friday, $1.45 billion of non-high-grade CBO/CDO/CLO issues were traded, along with $116.1 million of investment-grade securities. The non-investment-grade issues had an 81.5 average trading price and the investment-grade securities had a 99.3 average trading price.

Saratoga resets 2013 CLO

Saratoga Investment Advisors priced $566.5 million of notes in a reset and second refinancing of the Saratoga Investment Corp. CLO 2013-1 Ltd. deal, according to a market source and a news release on Tuesday.

Saratoga Investment Corp. CLO 2013-1 priced $255 million of class A-1FL-R-2 floating-rate notes at Libor plus 125 basis points at the top of the capital structure.

Goldman Sachs & Co. LLC was the refinancing agent.

The maturity on the reset notes was extended to Jan. 20, 2030 from the refinanced maturity of Oct. 20, 2025.

The CLO originally closed in 2013 when the vehicle GSC Investment Corp. CLO 2007 Ltd., which was brought to market in 2008, was refinanced and renamed Saratoga Investment Corp. CLO 2013-1 Ltd.

The Saratoga CLO was refinanced for the first time on Nov. 15, 2016.

In that $282.4 million refinancing, the CLO sold $170 million of the class A-1-R floating-rate notes at Libor plus 155 bps.

Saratoga Investment Advisors is an investment firm based in New York.

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